Post Utme Joseph Ayo Babalola University 2019 Economics Question 28

Practice objective / multiple choice question 28 from the 2019 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2019 Economics Objective / Multiple Choice
Question 28 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2019 • ECONOMICS • objective

Consider a firm with a production function Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦150 and r = ₦300, and the current output price is p = ₦600, calculate the firm's optimal input combination u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize its profit.

Answer Options

Correct Answer A. \( L = 150, K = 150 \)
B. \( L = 75, K = 75 \)
C. \( L = 300, K = 300 \)
D. \( L = 0, K = 0 \)
Correct Answer
A
Correct Option:
\( L = 150, K = 150 \)

About This Question

This is Post Utme Joseph Ayo Babalola University 2019 Economics Question 28. It is one of the objective questions from the 2019 Post Utme Joseph Ayo Babalola University Economics examination.

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