Post Utme Nile University 2021 Economics Question 17

Practice objective / multiple choice question 17 from the 2021 Post Utme Nile University Economics examination.

Post Utme Nile University 2021 Economics Objective / Multiple Choice

Question 17 POST_UTME_NILE_UNIVERSITY • 2021 • 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, and the firm's budget constraint is 100L + 200K = ₦10,000, find the optimal level of labor and capital.

Answer Options

A. L = 10, K = 20

B. L = 20, K = 10

Correct Answer C. L = 15, K = 15

D. L = 25, K = 5

Correct Answer

Correct Option:

L = 15, K = 15

About This Question

This is Post Utme Nile University 2021 Economics Question 17. It is one of the objective questions from the 2021 Post Utme Nile University Economics examination.

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