Post Utme Nile University 2025 Economics Question 37

Practice objective / multiple choice question 37 from the 2025 Post Utme Nile University Economics examination.

Post Utme Nile University 2025 Economics Objective / Multiple Choice
Question 37 POST_UTME_NILE_UNIVERSITY • 2025 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w_L = 10 and w_K = 20, and the firm's current output price is p = 50, calculate the firm's current profit-maximizing input bundle (L, K) and the corresponding output level Q.

Answer Options

A. (L, K) = (100, 400), Q = 200
B. (L, K) = (400, 100), Q = 200
Correct Answer C. (L, K) = (100, 100), Q = 141.42
D. (L, K) = (400, 400), Q = 400
Correct Answer
C
Correct Option:
(L, K) = (100, 100), Q = 141.42

About This Question

This is Post Utme Nile University 2025 Economics Question 37. It is one of the objective questions from the 2025 Post Utme Nile University Economics examination.

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