Table 17-2 Table 17-2 Lists Data for the Production of Production

question 31

Multiple Choice

Table 17-2
Table 17-2 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 17-2.What are the price and quantity of workers that result in the maximum amount of profit Apple would earn from selling iPods?

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

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Definitions:

Exchange

The act of trading goods, services, currencies, or other items of value between parties.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than competitors.

Production Possibilities Curve

A graph that shows the combinations of two goods that an economy can produce using all its resources efficiently.

Comparative Advantage

The capacity of a party to produce products or services with a lesser opportunity cost compared to others.