Table 124 Table 12

question 30

Multiple Choice

Table 12.4 Table 12.4 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.MP_L and MRP_L refer to the marginal product of labour and the marginal revenue product of labour, respectively.
-Refer to Table 12.4.The price and quantity of workers that result in the maximum amount of profit Apple would earn from selling iPods are

• A)$140; 2
• B)$160; 2
• C)$140; 3
• D)$180; 1

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Definitions:

Complements

Complements are goods or services that are used together, where the increase in the consumption of one leads to an increase in the consumption of the other.

Price Elasticity

An index indicating how the amount of a product demanded or supplied changes in response to a price variation.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a particular period of time.

Price

The amount of money expected, required, or given in payment for something, often determined by the conditions of demand and supply.