Post Utme Crawford University 2020 Economics Question 37
Practice objective / multiple choice question 37 from the 2020 Post Utme Crawford University Economics examination.
A firm is considering two different production techno\logies: one that uses a lot of labor and another that uses a lot of capital. The firm's production function is given by Q = 10L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm has a budget constraint of 100 units of labor and 50 units of capital, and the wage rate is 10 units of output per unit of labor, and the rental rate of capital is 20 units of output per unit of capital, which techno\logy should the firm choose?
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About This Question
This is Post Utme Crawford University 2020 Economics Question 37. It is one of the objective questions from the 2020 Post Utme Crawford University Economics examination.
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