Post Utme Lasu 2024 Economics Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Lasu Economics examination.

Post Utme Lasu 2024 Economics Objective / Multiple Choice

Question 16 POST_UTME_LASU • 2024 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦50, and the current output price is p = ₦200, calculate the firm's optimal input bundle (L, K) u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize its profit.

Correct Answer A. \( L = 100, K = 50 \)

B. \( L = 50, K = 100 \)

C. \( L = 25, K = 100 \)

D. \( L = 100, K = 25 \)

Correct Answer

Correct Option:

\( L = 100, K = 50 \)

This is Post Utme Lasu 2024 Economics Question 16. It is one of the objective questions from the 2024 Post Utme Lasu Economics examination.

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