Post Utme Pan Atlantic University 2023 Economics Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2023 Economics Objective / Multiple Choice
Question 36 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2023 • 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 = ₦100 and r = ₦200, and it is currently producing 100 units of output, what is the firm's current profit-maximizing input bundle?

Answer Options

Correct Answer A. \( L = 400, K = 400 \)
B. \( L = 200, K = 200 \)
C. \( L = 100, K = 100 \)
D. \( L = 50, K = 50 \)
Correct Answer
A
Correct Option:
\( L = 400, K = 400 \)

About This Question

This is Post Utme Pan Atlantic University 2023 Economics Question 36. It is one of the objective questions from the 2023 Post Utme Pan Atlantic University Economics examination.

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