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 firm represented in the table
A) has market power in the factor market.
B) has market power in the output market.
C) has market power in both the factor and product market.
D) has no market power in the factor or product market.

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 firm represented in the table
A) has market power in the factor market.
B) has market power in the output market.
C) has market power in both the factor and product market.
D) has no market power in the factor or product market.

Quizplus · Accepted Answer

The firm is able to charge different prices for its output depending on the quantity, indicating some level of market power in the output market. There is insufficient information to determine if the firm has market power in the factor market.

Table 102 -Refer to Table 10