Answer:
Reduce employment because the wage paid is more than the marginal revenue product.
Explanation:
If the wage rate is $30, then the marginal cost for the eight worker is $30.
The marginal revenue product of the eight worker is given by the marginal product multiplied by the price per bushel:
[tex]MR = 4\ bushels*\frac{\$6}{bushel}\\MR=\$24[/tex]
Since the marginal revenue product of the eight worker is less than the marginal cost (MR < MC), the farmer should reduce employment.
