Post Utme Aaua 2025 Economics Question 10

Practice objective / multiple choice question 10 from the 2025 Post Utme Aaua Economics examination.

Post Utme Aaua 2025 Economics Objective / Multiple Choice
Question 10 POST_UTME_AAUA • 2025 • ECONOMICS • objective

A firm is producing a good u\sing a production function Q = 3L^0.7K^0.3. If the firm's current input prices are w = ₦200 and r = ₦300, and the current output price is p = ₦700, calculate the firm's optimal input bundle (L, K) u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize its profit.

Answer Options

Correct Answer A. \( L = 200, K = 50 \)
B. \( L = 50, K = 200 \)
C. \( L = 300, K = 100 \)
D. \( L = 100, K = 300 \)
Correct Answer
A
Correct Option:
\( L = 200, K = 50 \)

About This Question

This is Post Utme Aaua 2025 Economics Question 10. It is one of the objective questions from the 2025 Post Utme Aaua Economics examination.

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