Post Utme Lead City University 2017 Economics Question 32

Practice objective / multiple choice question 32 from the 2017 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2017 Economics Objective / Multiple Choice
Question 32 POST_UTME_LEAD_CITY_UNIVERSITY • 2017 • ECONOMICS • objective

A firm has a production function Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the firm's optimal input bundle of labor and capital?

Answer Options

A. (L,K) = (100, 100)
B. (L,K) = (200, 50)
C. (L,K) = (50, 200)
Correct Answer D. (L,K) = (150, 150)
Correct Answer
D
Correct Option:
(L,K) = (150, 150)

About This Question

This is Post Utme Lead City University 2017 Economics Question 32. It is one of the objective questions from the 2017 Post Utme Lead City University Economics examination.

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