Table 12.4 Table 12.4 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.MP L and MRP L refer to the marginal product of labour and the marginal revenue product of labour, respectively.
-Refer to Table 12.4.The price and quantity of workers that result in the maximum amount of revenue Apple would earn from selling iPods are
A)$180; 1
B)$140; 2
C)$120; 2
D)$120; 4

Question

Table 12.4  Table 12.4 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.MP L and MRP L refer to the marginal product of labour and the marginal revenue product of labour, respectively.
-Refer to Table 12.4.The price and quantity of workers that result in the maximum amount of revenue Apple would earn from selling iPods are
A)$180; 1 
B)$140; 2 
C)$120; 2 
D)$120; 4

Quizplus · Accepted Answer

The maximum revenue is achieved when the price is $120 and the quantity of workers is 4, as this combination likely results in the highest total revenue from selling iPods.

Table 124 Table 12