QUESTION 1 Read the extract below and answer the questions that follow. A farmer hires 5 acres of land. He has to pay R5 000 rent to the owner for the whole period he has to use it. The farmer needs labourers to work on the field for 5 months. He hires 4 labourers in the first two months to till the soil, sow seeds, transport the seedlings and planting them by hand, fertilising and irrigating the field. The wage rate prevailing in the market is R75 per worker per day. The farmer will use only two workers for two months to look after the standing crop. When the time of harvesting arrives, he hires 4 workers for 15 days. The farmer has to acquire raw materials such as seeds, water, fertilizer, pesticides etc and spent R3 000. He rent tractor and pays rent for R2 500. After harvest he produces 30 tonnes of rice. Source: https://www.bing.com 1.1 State the market structure in which the farmer operates. (1)
