Post Utme Aaua 2022 Economics Question 37

Practice objective / multiple choice question 37 from the 2022 Post Utme Aaua Economics examination.

Post Utme Aaua 2022 Economics Objective / Multiple Choice
Question 37 POST_UTME_AAUA • 2022 • ECONOMICS • objective

Consider a firm producing two goods, X and Y, with the following production function: Q_x = 2L^0.5K^0.5 and Q_y = 3L^0.25K^0.75. If the firm's current input levels are L = 4 and K = 9, calculate the marginal rate of technical substitution (MRTS) between labor and capital for the production of good Y.

Answer Options

Correct Answer A. \( \frac{dQ_y}{dL} / \frac{dQ_y}{dK} = \frac{L^{-0.25}K^{0.25}}{L^{0.25}K^{-0.25}} \)
B. \( \frac{dQ_y}{dL} / \frac{dQ_y}{dK} = \frac{L^{0.25}K^{-0.25}}{L^{-0.25}K^{0.25}} \)
C. \( \frac{dQ_y}{dL} / \frac{dQ_y}{dK} = \frac{L^{0.5}K^{0.5}}{L^{0.5}K^{0.5}} \)
D. \( \frac{dQ_y}{dL} / \frac{dQ_y}{dK} = \frac{L^{-0.5}K^{-0.5}}{L^{0.5}K^{0.5}} \)
Correct Answer
A
Correct Option:
\( \frac{dQ_y}{dL} / \frac{dQ_y}{dK} = \frac{L^{-0.25}K^{0.25}}{L^{0.25}K^{-0.25}} \)

About This Question

This is Post Utme Aaua 2022 Economics Question 37. It is one of the objective questions from the 2022 Post Utme Aaua Economics examination.

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