Post Utme Futo 2019 Economics Question 18

Practice objective / multiple choice question 18 from the 2019 Post Utme Futo Economics examination.

Post Utme Futo 2019 Economics Objective / Multiple Choice

Question 18 POST_UTME_FUTO • 2019 • ECONOMICS • objective

A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the price of the good is $10 and the price of labor is $5 per unit, and the price of capital is $10 per unit, what is the optimal level of labor and capital for the firm?

Correct Answer A. L = 100, K = 100

B. L = 50, K = 50

C. L = 200, K = 200

D. L = 150, K = 150

Correct Answer

Correct Option:

L = 100, K = 100

This is Post Utme Futo 2019 Economics Question 18. It is one of the objective questions from the 2019 Post Utme Futo Economics examination.

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