JAMB Economics 2011 Objective — Question 14

Question 14 of 49 from the Joint Admissions and Matriculation Board (JAMB) Economics 2011 Objective paper, with the correct answer and a full explanation.

[Diagram: PPC with points R, S, T, U] From the diagram above, the optimal point of production is

• A. A. T
• B. B. U
• C. C. SCorrect
• D. D. R

Explanation

At point S, the isoquant is tangent to the isocost, which satisfies the condition for equilibrium.

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