Post Utme Caleb University 2021 Economics Question 18

Practice objective / multiple choice question 18 from the 2021 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2021 Economics Objective / Multiple Choice
Question 18 POST_UTME_CALEB_UNIVERSITY • 2021 • ECONOMICS • objective

A firm produces two goods, A and B. The production of good A requires 2 units of labor and 1 unit of capital, while the production of good B requires 1 unit of labor and 2 units of capital. If the firm has 10 units of labor and 8 units of capital, and the prices of goods A and B are ₦100 and ₦120 respectively, what is the optimal production plan?

Answer Options

A. Produce 5 units of good A and 3 units of good B
B. Produce 3 units of good A and 5 units of good B
Correct Answer C. Produce 4 units of good A and 4 units of good B
D. Produce 6 units of good A and 2 units of good B
Correct Answer
C
Correct Option:
Produce 4 units of good A and 4 units of good B

About This Question

This is Post Utme Caleb University 2021 Economics Question 18. It is one of the objective questions from the 2021 Post Utme Caleb University Economics examination.

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