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-(Table: Production Function for Soybeans) Look at the table Production Function for Soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which have a combined cost of $150 per day. The cost of labor is $100 per worker per day. The total cost of producing 75 bushels of soybeans is:
A) $650.
B) $1,150.
C) $1,225.
D) $7,650.

Question

Use the following to answer questions: 
-(Table: Production Function for Soybeans) Look at the table Production Function for Soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which have a combined cost of $150 per day. The cost of labor is $100 per worker per day. The total cost of producing 75 bushels of soybeans is:
A) $650. 
B) $1,150. 
C) $1,225. 
D) $7,650.

Quizplus · Accepted Answer

The total cost of production is the sum of the fixed cost and the variable cost. The fixed cost is the cost of the capital, which is $150 per day. The variable cost is the cost of labor, which is $100 per worker per day. The total cost of producing 75 bushels of soybeans is $150 + $100 = $250.

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