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Managerial Economics · Quiz 1 · 19 Jul 2026 · May 2026 term

Question 18: What will be the optimal combination of labour and capit…

Question 18

+1 markNumerical answer

A chair manufacturer hires its assembly-line labour for $20 an hour and calculates that the rental cost of its machinery is $30 per hour. Suppose that a chair can be produced using 5 hours of labour or machinery in any combination.
Based on the above data, answer the given subquestions.

What will be the optimal combination of labour and capital.
L*= _________________

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Correct answer: 5

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Question 18 of 22 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 19 Jul 2026, in the May 2026 term (Managerial Economics 16 Jul 26). It carries 1 mark.

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