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:

Direct Materials

Basic substances that can be directly connected to the making of a product and are vital parts of the finished goods.

Direct Labor

The labor directly involved in the manufacturing of a product, which can be easily traced back to that product.

Fixed Overhead

Refers to the static expenses that occur regardless of the level of production or business activity, such as rent, salaries, and insurance.

Direct Labor

The labor costs directly tied to the production of goods or services, including wages for workers who physically manufacture a product.