Mr. Cobb, a corn farmer, pays his workers $8 an hour. At his current level of labor use, the marginal product of an additional hour of labor is three bushels of corn. The market price of corn is $2.75. In order to maximize his profits, Mr. Cobb should:
a. hire more labor because the marginal revenue product is below the wage.
b. not hire more labor because the marginal revenue product exceeds the wage.
c. raise the price of the corn that he sells.
d. not hire more labor because the marginal revenue product is below the wage.
e. hire more labor because the marginal revenue product exceeds the wage.
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