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Imagine that our agricultural household produces soybeans using hours of labor (I) and acres of land (a). The price of an hour of labor is
Imagine that our agricultural household produces soybeans using hours of labor (I) and acres of land (a). The price of an hour of labor is $3 an hour. The price of an acre of land is $10 an acre. Soybeans sell wholesale for $100 per 100 pounds. The agricultural household's production function for 100 pounds of soybeans is: f(l, a) 2 0811/2013\". a. Suppose that in the short run the household is xed at 10 acres of land, but can hire as much labor as it wants. If we want to know the variable cost function, we must derive the amount of labor needed to produce a given level of output. This amount does not need to be optimal, and does not necessarily reect a prot maximizing solution for y or 1. With this in mind, write a function that tells us the labor needed given that the household chooses to produce some y units of soybeans (where each unit is 100 pounds)
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