Post Utme Oau 2024 Economics Question 1

Practice objective / multiple choice question 1 from the 2024 Post Utme Oau Economics examination.

Post Utme Oau 2024 Economics Objective / Multiple Choice

Question 1 POST_UTME_OAU • 2024 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the firm's \cost function is C(L,K) = 2L + 3K, what is the optimal level of labor (L) and capital (K) that the firm should employ?

Correct Answer A. $ L = 4, K = 4 $

B. $ L = 8, K = 2 $

C. $ L = 2, K = 8 $

D. $ L = 16, K = 1 $

Correct Answer

Correct Option:

$ L = 4, K = 4 $

This is Post Utme Oau 2024 Economics Question 1. It is one of the objective questions from the 2024 Post Utme Oau Economics examination.

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Chat with Support