Post Utme Redeemers University 2024 Economics Question 36

Practice objective / multiple choice question 36 from the 2024 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2024 Economics Objective / Multiple Choice
Question 36 POST_UTME_REDEEMERS_UNIVERSITY • 2024 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5H^0.5. If the firm's current input prices are w_L = ₦100 and w_H = ₦120, and the firm's current output price is p = ₦200, calculate the firm's optimal input mix (L, H) u\sing the Hotelling's Lemma.

Answer Options

Correct Answer A. L = 100, H = 50
B. L = 50, H = 100
C. L = 100, H = 100
D. L = 50, H = 50
Correct Answer
A
Correct Option:
L = 100, H = 50

About This Question

This is Post Utme Redeemers University 2024 Economics Question 36. It is one of the objective questions from the 2024 Post Utme Redeemers University Economics examination.

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