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

Question 8: If not, what will be the optimal combination of capital K…

Question 8

+2 marksNumerical answer

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 not, what will be the optimal combination of capital K*=_____________

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Correct answer: 4

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Question 8 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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