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Quantity Total of Labor Output MP, Price Revenue MRP, |Wage O O $200 $0 $500 16 6 180 500 2 11 5 160 500 3

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Quantity Total of Labor Output MP, Price Revenue MRP, |Wage O O $200 $0 $500 16 6 180 500 2 11 5 160 500 3 15 4 140 500 4 18 3 120 500 5 20 2 100 500 6 21 1 80 500 Table 16-4 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_ and MRPL refer to the marginal product of labor and the marginal revenue product of labor, respectively. Refer to Table 16-4. What are the price and quantity of workers that result in the maximum amount of profit Apple would earn from selling ipods? O $140; 2 O $160; 2 O $180; 1 O $140; 3

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