Post Utme Elizade University 2022 Economics Question 6

Practice objective / multiple choice question 6 from the 2022 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2022 Economics Objective / Multiple Choice
Question 6 POST_UTME_ELIZADE_UNIVERSITY • 2022 • ECONOMICS • objective

A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L^0.5K^0.5, while the production function for good Y is given by Y = 3L^0.25K^0.75. If the firm has 100 units of labor and 200 units of capital, and it wants to maximize the total output \( X + Y \), what is the optimal allocation of labor and capital between the two goods?

Answer Options

A. Allocate 50 units of labor and 100 units of capital to good X, and 50 units of labor and 100 units of capital to good Y.
Correct Answer B. Allocate 75 units of labor and 150 units of capital to good X, and 25 units of labor and 50 units of capital to good Y.
C. Allocate 100 units of labor and 200 units of capital to good X, and 0 units of labor and 0 units of capital to good Y.
D. Allocate 0 units of labor and 0 units of capital to good X, and 100 units of labor and 200 units of capital to good Y.
Correct Answer
B
Correct Option:
Allocate 75 units of labor and 150 units of capital to good X, and 25 units of labor and 50 units of capital to good Y.

About This Question

This is Post Utme Elizade University 2022 Economics Question 6. It is one of the objective questions from the 2022 Post Utme Elizade University Economics examination.

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