Post Utme Abu 2021 Economics Question 18

Practice objective / multiple choice question 18 from the 2021 Post Utme Abu Economics examination.

Post Utme Abu 2021 Economics Objective / Multiple Choice
Question 18 POST_UTME_ABU • 2021 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the price of labor is $10 per unit, while the price of capital is $20 per unit, what is the likely effect on the firm's profit?

Answer Options

Correct Answer A. The firm's profit will increase.
B. The firm's profit will decrease.
C. The firm's profit will remain unchanged.
D. The firm's profit will fluctuate.
Correct Answer
A
Correct Option:
The firm's profit will increase.

About This Question

This is Post Utme Abu 2021 Economics Question 18. It is one of the objective questions from the 2021 Post Utme Abu Economics examination.

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