Post Utme Delsu 2020 Economics Question 40

Practice objective / multiple choice question 40 from the 2020 Post Utme Delsu Economics examination.

Post Utme Delsu 2020 Economics Objective / Multiple Choice
Question 40 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 \( Q = 100K^0.4L^0.6 \). 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 maximize profit, what is the optimal combination of capital and labor?

Answer Options

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

About This Question

This is Post Utme Delsu 2020 Economics Question 40. It is one of the objective questions from the 2020 Post Utme Delsu Economics examination.

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