Post Utme Delsu 2020 Economics Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Delsu Economics examination.

Post Utme Delsu 2020 Economics Objective / Multiple Choice

Question 36 POST_UTME_DELSU • 2020 • ECONOMICS • objective

Consider a production function given by \( Q = 100K^0.4L^0.6 \), where Q is the quantity produced, K is the capital and L is the labor. If the price of capital is ₦100 per unit and the price of labor is ₦50 per unit, and the firm's objective is to maximize profit, what is the optimal combination of capital and labor?

A. \( K = 100, L = 50 \)

B. \( K = 50, L = 100 \)

Correct Answer C. \( K = 100, L = 100 \)

D. \( K = 50, L = 50 \)

Correct Answer

Correct Option:

\( K = 100, L = 100 \)

This is Post Utme Delsu 2020 Economics Question 36. It is one of the objective questions from the 2020 Post Utme Delsu Economics examination.

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