Post Utme Lautech 2025 Economics Question 16

Practice objective / multiple choice question 16 from the 2025 Post Utme Lautech Economics examination.

Post Utme Lautech 2025 Economics Objective / Multiple Choice
Question 16 POST_UTME_LAUTECH • 2025 • ECONOMICS • objective

Consider a firm with a production function Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current input prices are w = ₦100 per unit of labor and r = ₦200 per unit of capital, and the firm's current output price is p = ₦500 per unit, calculate the firm's current profit-maximizing input combination.

Answer Options

A. L = 4, K = 4
Correct Answer B. L = 8, K = 2
C. L = 2, K = 8
D. L = 16, K = 1
Correct Answer
B
Correct Option:
L = 8, K = 2

About This Question

This is Post Utme Lautech 2025 Economics Question 16. It is one of the objective questions from the 2025 Post Utme Lautech Economics examination.

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