Post Utme Futa 2025 Economics Question 11

Practice objective / multiple choice question 11 from the 2025 Post Utme Futa Economics examination.

Post Utme Futa 2025 Economics Objective / Multiple Choice
Question 11 POST_UTME_FUTA • 2025 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, what is the firm's optimal input combination (L, K) that maximizes its profit?

Answer Options

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

About This Question

This is Post Utme Futa 2025 Economics Question 11. It is one of the objective questions from the 2025 Post Utme Futa Economics examination.

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