Post Utme Igbinedion University 2021 Economics Question 38

Practice objective / multiple choice question 38 from the 2021 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2021 Economics Objective / Multiple Choice

Question 38 POST_UTME_IGBINEDION_UNIVERSITY • 2021 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, calculate the firm's optimal input bundle (L, K) u\sing the Hotelling's Lemma.

Answer Options

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

About This Question

This is Post Utme Igbinedion University 2021 Economics Question 38. It is one of the objective questions from the 2021 Post Utme Igbinedion University Economics examination.

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