Table 14.2
$\begin{array}{|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity of } \
\text { labour }
\end{array} & \begin{array}{c}
\text { Output of iPods per } \
\text { Week }
\end{array} & \begin{array}{c}
\text { Marginal Product of } \
\text { labour }
\end{array} & \begin{array}{c}
\text { Product Price } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Wage } \
\text { (dollars) }
\end{array} \
\hline 1 & 8 & 8 & \$ 300 & \$ 350 \
\hline 2 & 15 & 7 & 280 & 350 \
\hline 3 & 21 & 6 & 260 & 350 \
\hline 4 & 26 & 5 & 240 & 350 \
\hline 5 & 30 & 4 & 220 & 350 \
\hline 6 & 33 & 3 & 200 & 350 \
\hline 7 & 35 & 2 & 180 & 350 \
\hline
\end{array}$
-Refer to Table 14.2.What is the profit-maximizing quantity of labour that the firm should hire?

Question

Table 14.2
 $\begin{array}{|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity of } \
\text { labour }
\end{array} & \begin{array}{c}
\text { Output of iPods per } \
\text { Week }
\end{array} & \begin{array}{c}
\text { Marginal Product of } \
\text { labour }
\end{array} & \begin{array}{c}
\text { Product Price } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Wage } \
\text { (dollars) }
\end{array} \
\hline 1 & 8 & 8 & \$ 300 & \$ 350 \
\hline 2 & 15 & 7 & 280 & 350 \
\hline 3 & 21 & 6 & 260 & 350 \
\hline 4 & 26 & 5 & 240 & 350 \
\hline 5 & 30 & 4 & 220 & 350 \
\hline 6 & 33 & 3 & 200 & 350 \
\hline 7 & 35 & 2 & 180 & 350 \
\hline
\end{array}$
-Refer to Table 14.2.What is the profit-maximizing quantity of labour that the firm should hire?

Quizplus · Accepted Answer

The profit-maximizing quantity of labour is 5 units because at this quantity, the marginal product of labour is equal to the wage.

Table 142 -Refer to Table 14