Post Utme Lasu 2021 Economics Question 29

Practice objective / multiple choice question 29 from the 2021 Post Utme Lasu Economics examination.

Post Utme Lasu 2021 Economics Objective / Multiple Choice
Question 29 POST_UTME_LASU • 2021 • ECONOMICS • objective

A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A generates a positive externality for the production of good B. If the firm's marginal revenue product of labor for good A is 10 and the marginal revenue product of labor for good B is 15, what is the optimal labor allocation between the two goods?

Answer Options

A. 50% of labor allocated to good A and 50% to good B
Correct Answer B. 60% of labor allocated to good A and 40% to good B
C. 70% of labor allocated to good A and 30% to good B
D. 80% of labor allocated to good A and 20% to good B
Correct Answer
B
Correct Option:
60% of labor allocated to good A and 40% to good B

About This Question

This is Post Utme Lasu 2021 Economics Question 29. It is one of the objective questions from the 2021 Post Utme Lasu Economics examination.

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