Post Utme Aaua 2025 Economics Question 8

Practice objective / multiple choice question 8 from the 2025 Post Utme Aaua Economics examination.

Post Utme Aaua 2025 Economics Objective / Multiple Choice

Question 8 POST_UTME_AAUA • 2025 • ECONOMICS • objective

A firm is producing a good u\sing a Cobb-Douglas production function Q = 2L^0.4K^0.6. If the firm's current input prices are w = ₦150 and r = ₦250, and the current output price is p = ₦600, calculate the firm's optimal input bundle (L, K) u\sing the Shephard's Lemma. Assume that the firm's objective is to maximize its profit.

A. \( L = 150, K = 100 \)

Correct Answer B. \( L = 100, K = 150 \)

C. \( L = 200, K = 100 \)

D. \( L = 100, K = 200 \)

Correct Answer

Correct Option:

\( L = 100, K = 150 \)

This is Post Utme Aaua 2025 Economics Question 8. It is one of the objective questions from the 2025 Post Utme Aaua Economics examination.

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