Table 17-4 Table 17-4 Lists Data for the Production of Apple IPods

question 180

Multiple Choice

Table 17-4

Table 17-4 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. MPL and MRPL refer to the marginal product of labor and the marginal revenue product of labor, respectively.
-Refer to Table 17-4.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

---

Definitions:

E-mail Correspondence

Exchanges of messages via electronic mail, commonly used for personal, professional, and legal communication.

Electronic Copies

Digital formats of documents or materials, which can be accessed via computers or other electronic devices.

Lerner Index

A measure of a firm's market power, calculated as the difference between price and marginal cost, divided by price.

Monopoly Power

The ability of a single supplier to control the market price and exclude competitors.