Post Utme Osustech 2023 Economics Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Osustech Economics examination.

Post Utme Osustech 2023 Economics Objective / Multiple Choice
Question 16 POST_UTME_OSUSTECH • 2023 • ECONOMICS • objective

A firm is producing at a point on its production function where the marginal product of labor (MPL) is equal to the wage rate. However, the firm is not maximizing its profits. What is the main reason for this?

Answer Options

A. The firm is not producing at the optimal level of output.
B. The firm is not u\sing the optimal amount of capital.
C. The firm is not u\sing the optimal amount of labor.
Correct Answer D. The firm is not u\sing the optimal combination of labor and capital.
Correct Answer
D
Correct Option:
The firm is not u\sing the optimal combination of labor and capital.

About This Question

This is Post Utme Osustech 2023 Economics Question 16. It is one of the objective questions from the 2023 Post Utme Osustech Economics examination.

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