Post Utme Christopher University 2018 Economics Question 2

Practice objective / multiple choice question 2 from the 2018 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2018 Economics Objective / Multiple Choice
Question 2 POST_UTME_CHRISTOPHER_UNIVERSITY • 2018 • ECONOMICS • objective

A firm is considering the production of 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 10 units of capital available, and the market price of good A is ₦100 per unit and the market price of good B is ₦120 per unit, what is the optimal production mix for the firm?

Answer Options

A. The firm should produce 5 units of good A and 5 units of good B.
B. The firm should produce 10 units of good A and 0 units of good B.
C. The firm should produce 0 units of good A and 10 units of good B.
Correct Answer D. The firm should produce 7 units of good A and 3 units of good B.
Correct Answer
D
Correct Option:
The firm should produce 7 units of good A and 3 units of good B.

About This Question

This is Post Utme Christopher University 2018 Economics Question 2. It is one of the objective questions from the 2018 Post Utme Christopher University Economics examination.

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