Post Utme Caleb University 2024 Commerce Question 2

Practice objective / multiple choice question 2 from the 2024 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2024 Commerce Objective / Multiple Choice
Question 2 POST_UTME_CALEB_UNIVERSITY • 2024 • COMMERCE • objective

A firm's 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 if the firm's budget constraint is 100L + 200K = 10000, what is the optimal level of labor and capital that the firm should employ?

Answer Options

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

About This Question

This is Post Utme Caleb University 2024 Commerce Question 2. It is one of the objective questions from the 2024 Post Utme Caleb University Commerce examination.

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