Post Utme Futo 2017 Economics Question 10

Practice objective / multiple choice question 10 from the 2017 Post Utme Futo Economics examination.

Post Utme Futo 2017 Economics Objective / Multiple Choice
Question 10 POST_UTME_FUTO • 2017 • ECONOMICS • objective

A farmer produces wheat and maize. The production functions are \( Q_w = 2L_w^{0.5}K_w^{0.5} \) and \( Q_m = 2L_m^{0.5}K_m^{0.5} \), where \( L_w \) and \( K_w \) are labor and capital for wheat, and \( L_m \) and \( K_m \) are labor and capital for maize. If the prices of wheat and maize are \( P_w = 10 \) and \( P_m = 20 \), respectively, find the optimal values of \( L_w, K_w, L_m, \) and \( K_m \).

Answer Options

Correct Answer A. \( L_w = 100, K_w = 50, L_m = 50, K_m = 100 \)
B. \( L_w = 50, K_w = 100, L_m = 100, K_m = 50 \)
C. \( L_w = 200, K_w = 25, L_m = 25, K_m = 200 \)
D. \( L_w = 25, K_w = 200, L_m = 200, K_m = 25 \)
Correct Answer
A
Correct Option:
\( L_w = 100, K_w = 50, L_m = 50, K_m = 100 \)

About This Question

This is Post Utme Futo 2017 Economics Question 10. It is one of the objective questions from the 2017 Post Utme Futo Economics examination.

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