Post Utme Lautech 2022 Economics Question 6

Practice objective / multiple choice question 6 from the 2022 Post Utme Lautech Economics examination.

Post Utme Lautech 2022 Economics Objective / Multiple Choice
Question 6 POST_UTME_LAUTECH • 2022 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the good is P = 10 and the wage rate is W = 5, calculate the optimal level of labor \( L* \) and capital \( K* \) u\sing the first-order conditions for profit maximization.

Answer Options

Correct Answer A. \( L^* = 100, K^* = 100 \)
B. \( L^* = 50, K^* = 50 \)
C. \( L^* = 200, K^* = 200 \)
D. \( L^* = 25, K^* = 25 \)
Correct Answer
A
Correct Option:
\( L^* = 100, K^* = 100 \)

About This Question

This is Post Utme Lautech 2022 Economics Question 6. It is one of the objective questions from the 2022 Post Utme Lautech Economics examination.

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