Post Utme Oau 2025 Economics Question 11

Practice objective / multiple choice question 11 from the 2025 Post Utme Oau Economics examination.

Post Utme Oau 2025 Economics Objective / Multiple Choice
Question 11 POST_UTME_OAU • 2025 • 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 P = 10, and the firm's \cost function is C(L,K) = 2L + 3K, what is the optimal level of labor (L) and capital (K) to maximize profits?

Answer Options

Correct Answer A. \( L = 4, K = 4 \)
B. \( L = 2, K = 2 \)
C. \( L = 8, K = 8 \)
D. \( L = 1, K = 1 \)
Correct Answer
A
Correct Option:
\( L = 4, K = 4 \)

About This Question

This is Post Utme Oau 2025 Economics Question 11. It is one of the objective questions from the 2025 Post Utme Oau Economics examination.

View More Post Utme Oau 2025 Economics Questions More Post Utme Oau Practice Questions Back to Questions

Master the Exam!

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