Post Utme Nile University 2017 Economics Question 9

Practice objective / multiple choice question 9 from the 2017 Post Utme Nile University Economics examination.

Post Utme Nile University 2017 Economics Objective / Multiple Choice

Question 9 POST_UTME_NILE_UNIVERSITY • 2017 • ECONOMICS • objective

A firm is producing a good u\sing two inputs, labor and capital. The 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

A. L = 4, K = 2

Correct Answer B. L = 2, K = 4

C. L = 1, K = 1

D. L = 8, K = 1

Correct Answer

Correct Option:

L = 2, K = 4

About This Question

This is Post Utme Nile University 2017 Economics Question 9. It is one of the objective questions from the 2017 Post Utme Nile University Economics examination.

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