Table 17-4 Table 17-4 Lists Data for the Production of Apple IPods

question 127

Multiple Choice

Table 17-4

Table 17-4 lists data for the production of Apple iPods. Apple is assumed to be a price maker, so to increase its sales of iPods the firm must lower its price. MPL and MRPL refer to the marginal product of labor and the marginal revenue product of labor, respectively.
-Refer to Table 17-4.What are the quantity of labor and marginal revenue product of labor that will maximize the profit Apple would earn from selling iPods?

• A)2; $160
• B)3; $340
• C)2; $680
• D)3; $140

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Definitions:

Butter

A dairy product made from churning milk or cream, widely used as a spread and in cooking.

Gun Makers

Companies or individuals involved in the manufacturing of firearms.

American Economy

The economic system of the United States, characterized by a mixed economy with private freedom combined with centralized economic planning and government regulation.

Maximum Possible Output

The highest amount of goods or services an economy can produce when it is utilizing all of its resources efficiently.