Table 10-4
Table 10-4 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 labour and the marginal revenue product of labour, respectively.
-Refer to Table 10-4.What are the price and quantity of workers that result in the maximum amount of revenue Apple would earn from selling iPods?
A) $180; 1
B) $140; 2
C) $120; 2
D) $120; 4

Question

Table 10-4
  Table 10-4 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 labour and the marginal revenue product of labour, respectively.
-Refer to Table 10-4.What are the price and quantity of workers that result in the maximum amount of revenue Apple would earn from selling iPods?
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 10-4 Table 10-4 Lists Data for the Production of Production