Post Utme Esut 2020 Commerce Question 1

Practice objective / multiple choice question 1 from the 2020 Post Utme Esut Commerce examination.

Post Utme Esut 2020 Commerce Objective / Multiple Choice

Question 1 POST_UTME_ESUT • 2020 • COMMERCE • objective

A firm specializes in producing a single product. If the production function is given by Q = 100L^0.4K^0.6, where L is labor and K is capital, and the firm's budget constraint is given by W_L L + W_K K = 1000, where W_L is the wage rate and W_K is the rental rate of capital, what is the firm's optimal level of labor and capital?

A. (L, K) = (10, 20)

B. (L, K) = (20, 10)

Correct Answer C. (L, K) = (15, 15)

D. (L, K) = (25, 5)

Correct Answer

Correct Option:

(L, K) = (15, 15)

This is Post Utme Esut 2020 Commerce Question 1. It is one of the objective questions from the 2020 Post Utme Esut Commerce examination.

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