Post Utme Nile University 2019 Economics Question 26

Practice objective / multiple choice question 26 from the 2019 Post Utme Nile University Economics examination.

Post Utme Nile University 2019 Economics Objective / Multiple Choice

Question 26 POST_UTME_NILE_UNIVERSITY • 2019 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5H^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200H = 1000, what is the optimal level of labor and capital to maximize profits?

Answer Options

Correct Answer A. L = 10, H = 5

B. L = 5, H = 10

C. L = 20, H = 2

D. L = 15, H = 3

Correct Answer

Correct Option:

L = 10, H = 5

About This Question

This is Post Utme Nile University 2019 Economics Question 26. It is one of the objective questions from the 2019 Post Utme Nile University Economics examination.

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