Post Utme Joseph Ayo Babalola University 2024 Economics Question 1

Practice objective / multiple choice question 1 from the 2024 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2024 Economics Objective / Multiple Choice
Question 1 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 50, calculate the firm's optimal input bundle (L, H) u\sing the Lagrange method. What is the value of the Lagrange multiplier?

Answer Options

Correct Answer A. \( lambda = 5 \)
B. \( lambda = 10 \)
C. \( lambda = 15 \)
D. \( lambda = 20 \)
Correct Answer
A
Correct Option:
\( lambda = 5 \)

About This Question

This is Post Utme Joseph Ayo Babalola University 2024 Economics Question 1. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Economics examination.

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