Post Utme Esut 2021 Commerce Question 2

Practice objective / multiple choice question 2 from the 2021 Post Utme Esut Commerce examination.

Post Utme Esut 2021 Commerce Objective / Multiple Choice
Question 2 POST_UTME_ESUT • 2021 • COMMERCE • objective

A company has a production function given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, and the company wants to maximize its profit, what is the optimal level of labor (L) and capital (K)?

Answer Options

Correct Answer A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200
Correct Answer
A
Correct Option:
L = 100, K = 50

About This Question

This is Post Utme Esut 2021 Commerce Question 2. It is one of the objective questions from the 2021 Post Utme Esut Commerce examination.

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