Table 10.2
$$\begin{array} { | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Quantity of } \
\text { labour }
\end{array} & \begin{array} { c }
\text { Output of iPods per } \
\text { Week }
\end{array} & \begin{array} { c }
\text { Marginal Product of } \
\text { labour }
\end{array} & \begin{array} { c }
\text { Product Price } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Wage } \
\text { (dollars) }
\end{array} \
\hline 1 & 8 & 8 & \$ 300 & \$ 350 \
\hline 2 & 15 & 7 & 280 & 350 \
\hline 3 & 21 & 6 & 260 & 350 \
\hline 4 & 26 & 5 & 240 & 350 \
\hline 5 & 30 & 4 & 220 & 350 \
\hline 6 & 33 & 3 & 200 & 350 \
\hline 7 & 35 & 2 & 180 & 350 \
\hline
\end{array}$$
-Refer to Table 10.2.The profit-maximising quantity of labour that the firm should hire is _______.

Question

Table 10.2
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity of } \
\text { labour }
\end{array} & \begin{array} { c } 
\text { Output of iPods per } \
\text { Week }
\end{array} & \begin{array} { c } 
\text { Marginal Product of } \
\text { labour }
\end{array} & \begin{array} { c } 
\text { Product Price } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Wage } \
\text { (dollars) }
\end{array} \
\hline 1 & 8 & 8 & \$ 300 & \$ 350 \
\hline 2 & 15 & 7 & 280 & 350 \
\hline 3 & 21 & 6 & 260 & 350 \
\hline 4 & 26 & 5 & 240 & 350 \
\hline 5 & 30 & 4 & 220 & 350 \
\hline 6 & 33 & 3 & 200 & 350 \
\hline 7 & 35 & 2 & 180 & 350 \
\hline
\end{array}$$
-Refer to Table 10.2.The profit-maximising quantity of labour that the firm should hire is _______.

Quizplus · Accepted Answer

The profit-maximizing quantity of labor is where the marginal revenue product of labor (MRPL) equals the wage rate. In this case, the MRPL is $240 and the wage rate is $350. Therefore, the profit-maximizing quantity of labor is 4 units.

Table 102 -Refer to Table 10