Post Utme Bsu 2023 Economics Question 6

Practice objective / multiple choice question 6 from the 2023 Post Utme Bsu Economics examination.

Post Utme Bsu 2023 Economics Objective / Multiple Choice
Question 6 POST_UTME_BSU • 2023 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5 * K^0.5. If the price of the good is P = 10 and the wage rate is W = 5, calculate the optimal level of labor (L) and capital (K) u\sing the first-order conditions for profit maximization.

Answer Options

Correct Answer A. L = 4, K = 16
B. L = 16, K = 4
C. L = 2, K = 8
D. L = 8, K = 2
Correct Answer
A
Correct Option:
L = 4, K = 16

About This Question

This is Post Utme Bsu 2023 Economics Question 6. It is one of the objective questions from the 2023 Post Utme Bsu Economics examination.

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