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Table 17-4 Quantity of Labor Output MPL Price Total Revenue MRPL Wage 0 0 --- $200 $0 --- $500 1 6 6 180 500 2
Table 17-4 Quantity of Labor Output MPL Price Total Revenue MRPL Wage 0 0 --- $200 $0 --- $500 1 6 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 17-4 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 labor and the marginal revenue product of labor, respectively. Refer to Table 17-4. What are the price and quantity of workers that result in the maximum amount of profit Apple would earn from selling iPods? Group of answer choices $180; 1 $160; 2 $140; 3 $140; 2
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