Post Utme Lautech 2025 Commerce Question 35

Practice objective / multiple choice question 35 from the 2025 Post Utme Lautech Commerce examination.

Post Utme Lautech 2025 Commerce Objective / Multiple Choice
Question 35 POST_UTME_LAUTECH • 2025 • COMMERCE • objective

A firm produces two goods, A and B, using two inputs, labor (L) and capital (K). The production function for good A is given by Q_A = 2L^0.5 * K^0.5, while the production function for good B is given by Q_B = 3L^0.2 * K^0.8. If the firm has 100 units of labor and 150 units of capital, and the prices of labor and capital are ₦50 and ₦100 respectively, determine the optimal mix of goods A and B to produce, given that the firm's objective is to maximize profits.

Answer Options

A. Produce 50 units of good A and 50 units of good B
Correct Answer B. Produce 75 units of good A and 25 units of good B
C. Produce 25 units of good A and 75 units of good B
D. Produce 100 units of good A and 0 units of good B
Correct Answer
B
Correct Option:
Produce 75 units of good A and 25 units of good B

About This Question

This is Post Utme Lautech 2025 Commerce Question 35. It is one of the objective questions from the 2025 Post Utme Lautech Commerce examination.

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