Post Utme Afe Babalola University 2021 Economics Question 3

Practice objective / multiple choice question 3 from the 2021 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2021 Economics Objective / Multiple Choice
Question 3 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2021 • ECONOMICS • objective

A firm's production function is given by Q = 10L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is $10 per hour and the price of capital is $20 per hour, and if the firm wants to maximize its profit, what is the optimal combination of labor and capital?

Answer Options

Correct Answer A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 150, K = 150
Correct Answer
A
Correct Option:
L = 100, K = 100

About This Question

This is Post Utme Afe Babalola University 2021 Economics Question 3. It is one of the objective questions from the 2021 Post Utme Afe Babalola University Economics examination.

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