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

question 109

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 quantity of labor and marginal revenue product of labor that will maximize the profit Apple would earn from selling iPods?

• A)2; $160
• B)3; $340
• C)2; $680
• D)3; $140

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony and conformity results in irrational or dysfunctional decision-making outcomes.

Groupthink Theory

A mental occurrence within a group where the pursuit of agreement or uniformity leads to illogical or ineffective choices.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, either more conservative or riskier.

Risky Shift

The phenomenon where groups make riskier decisions than individuals would.