Post Utme Ksu 2019 Economics Question 7

Practice objective / multiple choice question 7 from the 2019 Post Utme Ksu Economics examination.

Post Utme Ksu 2019 Economics Objective / Multiple Choice
Question 7 POST_UTME_KSU • 2019 • ECONOMICS • objective

A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions are given by Q_A = 2L^0.5K^0.5 and Q_B = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, find the optimal allocation of labor and capital between the two goods.

Answer Options

A. L_A = 50, L_B = 50, K_A = 25, K_B = 25
Correct Answer B. L_A = 75, L_B = 25, K_A = 37.5, K_B = 12.5
C. L_A = 100, L_B = 0, K_A = 50, K_B = 0
D. L_A = 0, L_B = 100, K_A = 0, K_B = 50
Correct Answer
B
Correct Option:
L_A = 75, L_B = 25, K_A = 37.5, K_B = 12.5

About This Question

This is Post Utme Ksu 2019 Economics Question 7. It is one of the objective questions from the 2019 Post Utme Ksu Economics examination.

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