Post Utme Al Hikmah University 2020 Economics Question 5

Practice objective / multiple choice question 5 from the 2020 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2020 Economics Objective / Multiple Choice

Question 5 POST_UTME_AL-HIKMAH_UNIVERSITY • 2020 • ECONOMICS • objective

Consider a firm with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5, what is the optimal level of labor (L) and capital (K) that the firm should employ?

Answer Options

A. $ L = 100, K = 100 $

B. $ L = 25, K = 25 $

Correct Answer C. $ L = 50, K = 50 $

D. $ L = 200, K = 200 $

Correct Answer

Correct Option:

$ L = 50, K = 50 $

About This Question

This is Post Utme Al Hikmah University 2020 Economics Question 5. It is one of the objective questions from the 2020 Post Utme Al Hikmah University Economics examination.

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