Table 102 -Refer to Table 10

question 59

Multiple Choice

Table 10.2
$$\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Quantity of } \\\text { labour }\end{array} & \begin{array} { c } \text { Output of iPods per } \\\text { Week }\end{array} & \begin{array} { c } \text { Marginal Product of } \\\text { labour }\end{array} & \begin{array} { c } \text { Product Price } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Wage } \\\text { (dollars) }\end{array} \\\hline 1 & 8 & 8 & \$ 300 & \$ 350 \\\hline 2 & 15 & 7 & 280 & 350 \\\hline 3 & 21 & 6 & 260 & 350 \\\hline 4 & 26 & 5 & 240 & 350 \\\hline 5 & 30 & 4 & 220 & 350 \\\hline 6 & 33 & 3 & 200 & 350 \\\hline 7 & 35 & 2 & 180 & 350 \\\hline\end{array}$$
-Refer to Table 10.2.The profit-maximising quantity of labour that the firm should hire is _______.

• A) 5 units
• B) 4 units
• C) 3 units
• D) 2 units

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Definitions:

Revealed Preference Theory

An economic theory proposing that individuals' preferences can be deduced from their purchasing habits and choices, rather than through their words or responses to surveys.

Debit Card

A payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Indifference Curve

A graphical representation showing combinations of goods among which a consumer is indifferent, indicating the same level of utility or satisfaction.