Post Utme Redeemers University 2019 Economics Question 28

Practice objective / multiple choice question 28 from the 2019 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2019 Economics Objective / Multiple Choice
Question 28 POST_UTME_REDEEMERS_UNIVERSITY • 2019 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units, and the price of labor is ₦10 per unit, and the price of capital is ₦20 per unit, what is the optimal mix of labor and capital?

Answer Options

A. ₦50 billion labor, ₦50 billion capital
Correct Answer B. ₦75 billion labor, ₦25 billion capital
C. ₦25 billion labor, ₦75 billion capital
D. ₦0 billion labor, ₦100 billion capital
Correct Answer
B
Correct Option:
₦75 billion labor, ₦25 billion capital

About This Question

This is Post Utme Redeemers University 2019 Economics Question 28. It is one of the objective questions from the 2019 Post Utme Redeemers University Economics examination.

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