Post Utme Bsu 2021 Commerce Question 8

Practice objective / multiple choice question 8 from the 2021 Post Utme Bsu Commerce examination.

Post Utme Bsu 2021 Commerce Objective / Multiple Choice
Question 8 POST_UTME_BSU • 2021 • COMMERCE • objective

A firm's cost function is given by C = 2L + 3K. 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 8. It is one of the objective questions from the 2021 Post Utme Bsu Commerce examination.

View More Post Utme Bsu 2021 Commerce Questions More Post Utme Bsu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support