Post Utme Bowen University 2017 Economics Question 40

Practice objective / multiple choice question 40 from the 2017 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2017 Economics Objective / Multiple Choice
Question 40 POST_UTME_BOWEN_UNIVERSITY • 2017 • ECONOMICS • objective

A firm's production function is given by \( Q = 10L^0.5K^0.5 \), where (Q) is the output, (L) is the labor and (K) is the capital. If the firm's budget constraint is given by \( 10L + 20K = 100 \), what is the firm's optimal level of labor and capital?

Answer Options

Correct Answer A. \( L = 2, K = 2 \)
B. \( L = 4, K = 1 \)
C. \( L = 1, K = 4 \)
D. \( L = 3, K = 3 \)
Correct Answer
A
Correct Option:
\( L = 2, K = 2 \)

About This Question

This is Post Utme Bowen University 2017 Economics Question 40. It is one of the objective questions from the 2017 Post Utme Bowen University Economics examination.

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