Post Utme Unilorin 2017 Economics Question 11

Practice objective / multiple choice question 11 from the 2017 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2017 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNILORIN • 2017 • ECONOMICS • objective

A firm is operating at a point on its production function where the marginal product of labor is 4 units and the marginal product of capital is 6 units. If the firm's current input prices are $8 per unit of labor and $12 per unit of capital, what is the optimal input combination?

Answer Options

Correct Answer A. Increase labor and decrease capital
B. Increase capital and decrease labor
C. Increase both labor and capital
D. Decrease both labor and capital
Correct Answer
A
Correct Option:
Increase labor and decrease capital

About This Question

This is Post Utme Unilorin 2017 Economics Question 11. It is one of the objective questions from the 2017 Post Utme Unilorin Economics examination.

View More Post Utme Unilorin 2017 Economics Questions More Post Utme Unilorin Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support