Table 104 Table 104 Lists Data for the Production of Apple IPods

question 9

Multiple Choice

Table 10.4
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Quantity of } \\\text { labour }\end{array} & \text { Output } & \boldsymbol { M P } _ { \mathbf { L } } & \text { Price } & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} & \boldsymbol { M R P } _ { \mathbf { L } } & \text { Wage } \\\hline 0 & 0 & - & \$ 200 & \$ 0 & - & \$ 500 \\\hline 1 & 6 & 6 & 180 & & & 500 \\\hline 2 & 11 & 5 & 160 & & & 500 \\\hline 3 & 15 & 4 & 140 & & & 500 \\\hline 4 & 18 & 3 & 120 & & & 500 \\\hline 5 & 20 & 2 & 100 & & & 500 \\\hline 6 & 21 & 1 & 80 & & & 500 \\\hline\end{array}$$ Table 10.4 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 10.4.The price and quantity of workers that result in the maximum amount of profit Apple would earn from selling iPods are _________,respectively.

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

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Definitions:

Output Units

The units of production or service delivery output by a process or system within a given period.

Labour Hours

The total amount of working time executed by employees, usually measured in hours, for producing goods or delivering services.

Incremental Value

The additional financial worth generated as a result of a specific action or decision.

All-Equity Firms

Companies that finance their operations without any debt, relying solely on equity.