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Managerial Economics · Quiz 1 · 25 Feb 2024 · January 2024 term

Question 6: If the firm is currently using 3 hours of labour for each…

Question 6

+2 marksOne correct option

A chair manufacturer hires its assembly-line labour for $30 an hour and calculates that the rental cost of its machinery is $15 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 labour for each hour of machine 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 6 of 19 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 25 Feb 2024, in the January 2024 term (IIT M DEGREE AN2 EXAM QDB2 25 Feb 2024). It carries 2 marks.

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