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Managerial Economics · Quiz 1 · 15 Mar 2026 · January 2026 term

Question 10: If the firm is currently using 3 hours of machine time f…

Question 10

+1 markOne correct option

A chair manufacturer hires its assembly-line labour for $15 an hour and calculates that the rental cost of its machinery is $30 per hour. Suppose that a chair can be produced using 4 hours of labour or machinery in any combination.
Based on the above data, answer the given subquestions.

If the firm is currently using 3 hours of machine time for each hour of labour time, is it minimizing its costs of production? _____________

  1. A

    Yes

  2. B

    No

Show answer

Correct answer

  • B

    No

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Question 10 of 24 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 15 Mar 2026, in the January 2026 term (Managerial Economics 15 Mar 26). It carries 1 mark.

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