Post Utme Bells University 2022 Economics Question 1

Practice objective / multiple choice question 1 from the 2022 Post Utme Bells University Economics examination.

Post Utme Bells University 2022 Economics Objective / Multiple Choice
Question 1 POST_UTME_BELLS_UNIVERSITY • 2022 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it currently employs 4 units of labor and 2 units of capital, calculate the firm's current output and the returns to scale.

Answer Options

A. Q = 8, Decrea\sing Returns to Scale
Correct Answer B. Q = 16, Increa\sing Returns to Scale
C. Q = 4, Cons\tant Returns to Scale
D. Q = 2, Decrea\sing Returns to Scale
Correct Answer
B
Correct Option:
Q = 16, Increa\sing Returns to Scale

About This Question

This is Post Utme Bells University 2022 Economics Question 1. It is one of the objective questions from the 2022 Post Utme Bells University Economics examination.

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