Post Utme Abu 2024 Commerce Question 13

Practice objective / multiple choice question 13 from the 2024 Post Utme Abu Commerce examination.

Post Utme Abu 2024 Commerce Objective / Multiple Choice
Question 13 POST_UTME_ABU • 2024 • COMMERCE • objective

A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal level of labor and capital to produce 100 units of the good?

Answer Options

A. L = 10, K = 20
B. L = 20, K = 10
Correct Answer C. L = 15, K = 15
D. L = 25, K = 5
Correct Answer
C
Correct Option:
L = 15, K = 15

About This Question

This is Post Utme Abu 2024 Commerce Question 13. It is one of the objective questions from the 2024 Post Utme Abu Commerce examination.

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