Post Utme Osustech 2017 Economics Question 2

Practice objective / multiple choice question 2 from the 2017 Post Utme Osustech Economics examination.

Post Utme Osustech 2017 Economics Objective / Multiple Choice

Question 2 POST_UTME_OSUSTECH • 2017 • ECONOMICS • objective

A firm has a production function \( Q = 2L^{0.4}K^{0.6} \). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is ₦10,000, what is the optimal level of labor and capital?

Answer Options

Correct Answer A. L = 10, K = 5

B. L = 5, K = 10

C. L = 15, K = 3

D. L = 20, K = 2

Correct Answer

Correct Option:

L = 10, K = 5

About This Question

This is Post Utme Osustech 2017 Economics Question 2. It is one of the objective questions from the 2017 Post Utme Osustech Economics examination.

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