Post Utme Abu 2022 Economics Question 20

Practice objective / multiple choice question 20 from the 2022 Post Utme Abu Economics examination.

Post Utme Abu 2022 Economics Objective / Multiple Choice
Question 20 POST_UTME_ABU • 2022 • ECONOMICS • objective

A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor increases from ₦100 to ₦120 and the price of capital increases from ₦200 to ₦240, what is the new \cost-minimizing combination of labor and capital?

Answer Options

Correct Answer A. L = 16, K = 9
B. L = 9, K = 16
C. L = 4, K = 4
D. L = 2, K = 2
Correct Answer
A
Correct Option:
L = 16, K = 9

About This Question

This is Post Utme Abu 2022 Economics Question 20. It is one of the objective questions from the 2022 Post Utme Abu Economics examination.

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