Post Utme Futo 2018 Economics Question 23

Practice objective / multiple choice question 23 from the 2018 Post Utme Futo Economics examination.

Post Utme Futo 2018 Economics Objective / Multiple Choice

Question 23 POST_UTME_FUTO • 2018 • ECONOMICS • objective

Consider a firm with a production function given by \( Q = 100K^{\frac{1}{3}}L^{\frac{2}{3}} \). If the price of capital is ₦100 per unit and the price of labor is ₦50 per unit, and the firm's budget constraint is ₦10,000, what is the optimal combination of capital and labor that the firm should employ?

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

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

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

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

Correct Answer

Correct Option:

\( K = 15, L = 15 \)

This is Post Utme Futo 2018 Economics Question 23. It is one of the objective questions from the 2018 Post Utme Futo Economics examination.

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Chat with Support