Post Utme Futo 2019 Economics Question 30

Practice objective / multiple choice question 30 from the 2019 Post Utme Futo Economics examination.

Post Utme Futo 2019 Economics Objective / Multiple Choice

Question 30 POST_UTME_FUTO • 2019 • ECONOMICS • objective

A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $20 per hour, and the rental rate of capital is $15 per hour, what is the profit-maximizing level of labor and capital?

Correct Answer A. L = 10, K = 10

B. L = 20, K = 20

C. L = 5, K = 5

D. L = 15, K = 15

Correct Answer

Correct Option:

L = 10, K = 10

This is Post Utme Futo 2019 Economics Question 30. It is one of the objective questions from the 2019 Post Utme Futo Economics examination.

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