Post Utme Covenant University 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_COVENANT_UNIVERSITY • 2020 • ECONOMICS • objective

A firm produces a product with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the \cost-minimizing combination of labor and capital.

Answer Options

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

About This Question

This is Post Utme Covenant University 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Covenant University Economics examination.

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