Post Utme Babcock University 2023 Economics Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2023 Economics Objective / Multiple Choice
Question 39 POST_UTME_BABCOCK_UNIVERSITY • 2023 • ECONOMICS • objective

A firm has a production function Q = 2L^0.5K^0.5. If the price of labor is $10 and the price of capital is $20, find the profit-maximizing values of L and K.

Answer Options

Correct Answer A. $L = 100, K = 100$
B. $L = 200, K = 200$
C. $L = 50, K = 50$
D. $L = 25, K = 25$
Correct Answer
A
Correct Option:
$L = 100, K = 100$

About This Question

This is Post Utme Babcock University 2023 Economics Question 39. It is one of the objective questions from the 2023 Post Utme Babcock University Economics examination.

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