Post Utme Aaua 2024 Commerce Question 39

Practice objective / multiple choice question 39 from the 2024 Post Utme Aaua Commerce examination.

Post Utme Aaua 2024 Commerce Objective / Multiple Choice

Question 39 POST_UTME_AAUA • 2024 • COMMERCE • objective

A company produces two products, A and B, using two inputs, labor and capital. The production function for product A is given by Q_A = 2L^0.5K^0.5, while the production function for product B is given by Q_B = 3L^0.7K^0.3. If the company has 100 units of labor and 50 units of capital available, how many units of product A and product B should it produce to maximize profits?

Correct Answer A. Q_A = 20, Q_B = 30

B. Q_A = 30, Q_B = 20

C. Q_A = 25, Q_B = 25

D. Q_A = 15, Q_B = 35

Correct Answer

Correct Option:

Q_A = 20, Q_B = 30

This is Post Utme Aaua 2024 Commerce Question 39. It is one of the objective questions from the 2024 Post Utme Aaua Commerce examination.

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