Post Utme Bowen University 2018 Economics Question 36

Practice objective / multiple choice question 36 from the 2018 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2018 Economics Objective / Multiple Choice
Question 36 POST_UTME_BOWEN_UNIVERSITY • 2018 • ECONOMICS • objective

The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200K = 10000, what is the optimal level of labor and capital?

Answer Options

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

About This Question

This is Post Utme Bowen University 2018 Economics Question 36. It is one of the objective questions from the 2018 Post Utme Bowen University Economics examination.

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