Post Utme Ims U 2020 Economics Question 18

Practice objective / multiple choice question 18 from the 2020 Post Utme Ims U Economics examination.

Post Utme Ims U 2020 Economics Objective / Multiple Choice
Question 18 POST_UTME_IMS_U • 2020 • ECONOMICS • objective

Consider a production function given by Q = 2L^0.5K^0.5. If the price of labor is $10 per unit and the price of capital is $20 per unit, what is the optimal combination of labor and capital?

Answer Options

A. L = 4, K = 1
B. L = 1, K = 4
Correct Answer C. L = 2, K = 2
D. L = 1, K = 1
Correct Answer
C
Correct Option:
L = 2, K = 2

About This Question

This is Post Utme Ims U 2020 Economics Question 18. It is one of the objective questions from the 2020 Post Utme Ims U Economics examination.

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