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

Question 11: If not, what will be the optimal combination of labour a…

Question 11

+1 markNumerical answer

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 not, what will be the optimal combination of labour and capital.
L* = ________

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Correct answer: 4

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Question 11 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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