Post Utme Delsu 2020 Economics Question 38

Practice objective / multiple choice question 38 from the 2020 Post Utme Delsu Economics examination.

Post Utme Delsu 2020 Economics Objective / Multiple Choice

Question 38 POST_UTME_DELSU • 2020 • ECONOMICS • objective

A firm is producing a good u\sing two inputs, labor and capital. The production function is given by \( Q = 100L^0.4K^0.6 \). If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm's objective is to minimize \cost, what is the optimal combination of labor and capital?

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

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

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

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

Correct Answer

Correct Option:

\( L = 100, K = 100 \)

This is Post Utme Delsu 2020 Economics Question 38. It is one of the objective questions from the 2020 Post Utme Delsu Economics examination.

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