Question: Think about this statement from a wheat farmer to the workers.The price of wheat is low this year, and the most I can get for

Think about this statement from a wheat farmer to the workers."The price of wheat is low this year, and the most I can get for the crop is $35,000.If I pay you the same amount as last year ($30,000) I will lose money because I also had to pay $20,000 three months ago for seed and fertilizer.I'd be crazy to pay a total of $50,000 to harvest a crop I can sell for only $35,000.If you will work for half as much as last year ($15,000), my total cost will be $35,000 and I will break even.If you don't take a pay cut, I won't harvest the wheat."Is he bluffing?Does the farmer make economic sense?Why or why not?

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