Post Utme Bsu 2021 Commerce Question 10

Practice objective / multiple choice question 10 from the 2021 Post Utme Bsu Commerce examination.

Post Utme Bsu 2021 Commerce Objective / Multiple Choice
Question 10 POST_UTME_BSU • 2021 • COMMERCE • objective

A firm's production function is given by Q = 2L^0.4K^0.3. If the firm's output is 100 units, and the wage rate is ₦100 per hour, and the rental rate is ₦50 per unit of capital, determine the optimal combination of labor and capital that minimizes the total cost of production.

Answer Options

A. ₦2000, 10 units of labor, 5 units of capital
Correct Answer B. ₦2500, 15 units of labor, 10 units of capital
C. ₦3000, 20 units of labor, 15 units of capital
D. ₦3500, 25 units of labor, 20 units of capital
Correct Answer
B
Correct Option:
₦2500, 15 units of labor, 10 units of capital

About This Question

This is Post Utme Bsu 2021 Commerce Question 10. It is one of the objective questions from the 2021 Post Utme Bsu Commerce examination.

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