Post Utme Redeemers University 2020 Economics Question 14

Practice objective / multiple choice question 14 from the 2020 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2020 Economics Objective / Multiple Choice

Question 14 POST_UTME_REDEEMERS_UNIVERSITY • 2020 • ECONOMICS • objective

A firm is 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 minimizes \cost?

Answer Options

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 $

About This Question

This is Post Utme Redeemers University 2020 Economics Question 14. It is one of the objective questions from the 2020 Post Utme Redeemers University Economics examination.

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