31)Refer to Table 17-2.What are the quantity of labor and marginal revenue product of labor that willmaximize the profit Apple would earn from selling iPods?A) 2; $680B) 3; $140C) 3; $340D) 2; $160Answer: A31)Diff: 3Page Ref: 548-549/548-549Topic: The Demand for LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Analytic Skills32) Suppose a competitive firm is paying a wage of $12 an hour. Assume that labor is the only input.If hiring another worker would increase output by four units per hour, then to maximize profitsthe firm should32)Diff: 2Page Ref: 546/546Topic: Marginal Product of LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Analytic Skills33) Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit.Assume that labor is the only input. If the last worker hired produces four units of output perhour, then to maximize profits the firm should33)Diff: 2Page Ref: 546/546Topic: Marginal Product of LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Analytic Skills34) The market demand curve for labor34)Diff: 1Page Ref: 549/549Topic: The Demand for LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Reflective Thinking10

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