Post Utme Aaua 2025 Economics Question 35

Practice objective / multiple choice question 35 from the 2025 Post Utme Aaua Economics examination.

Post Utme Aaua 2025 Economics Objective / Multiple Choice
Question 35 POST_UTME_AAUA • 2025 • ECONOMICS • objective

A firm is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm's MPL is 0.5 units of output per additional worker, and the wage rate is ₦100 per hour, what is the firm's optimal level of capital?

Answer Options

A. 10 units of capital
Correct Answer B. 20 units of capital
C. 30 units of capital
D. 40 units of capital
Correct Answer
B
Correct Option:
20 units of capital

About This Question

This is Post Utme Aaua 2025 Economics Question 35. It is one of the objective questions from the 2025 Post Utme Aaua Economics examination.

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