Post Utme Rhema University 2017 Economics Question 7

Practice objective / multiple choice question 7 from the 2017 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2017 Economics Objective / Multiple Choice
Question 7 POST_UTME_RHEMA_UNIVERSITY • 2017 • 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, find the optimal input mix.

Answer Options

Correct Answer A. L = 100 units, K = 50 units
B. L = 50 units, K = 100 units
C. L = 200 units, K = 25 units
D. L = 25 units, K = 200 units
Correct Answer
A
Correct Option:
L = 100 units, K = 50 units

About This Question

This is Post Utme Rhema University 2017 Economics Question 7. It is one of the objective questions from the 2017 Post Utme Rhema University Economics examination.

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