Post Utme Mountain Top University 2017 Economics Question 12

Practice objective / multiple choice question 12 from the 2017 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2017 Economics Objective / Multiple Choice
Question 12 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2017 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal combination of labor and capital?

Answer Options

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

About This Question

This is Post Utme Mountain Top University 2017 Economics Question 12. It is one of the objective questions from the 2017 Post Utme Mountain Top University Economics examination.

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