Post Utme Ksu 2022 Economics Question 25

Practice objective / multiple choice question 25 from the 2022 Post Utme Ksu Economics examination.

Post Utme Ksu 2022 Economics Objective / Multiple Choice
Question 25 POST_UTME_KSU • 2022 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C(L,K) = 2L + 3K, what is the firm's optimal level of labor (L) and capital (K) if the firm's objective is to maximize profits?

Answer Options

Correct Answer A. \( L = 16, K = 9 \)
B. \( L = 9, K = 16 \)
C. \( L = 4, K = 4 \)
D. \( L = 1, K = 1 \)
Correct Answer
A
Correct Option:
\( L = 16, K = 9 \)

About This Question

This is Post Utme Ksu 2022 Economics Question 25. It is one of the objective questions from the 2022 Post Utme Ksu Economics examination.

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