Post Utme Rhema University 2021 Economics Question 1

Practice objective / multiple choice question 1 from the 2021 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2021 Economics Objective / Multiple Choice
Question 1 POST_UTME_RHEMA_UNIVERSITY • 2021 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of the good is $10 and the firm's \cost function is C = 5L + 3K, what is the optimal level of labor (L) and capital (K) that the firm should employ?

Answer Options

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

About This Question

This is Post Utme Rhema University 2021 Economics Question 1. It is one of the objective questions from the 2021 Post Utme Rhema University Economics examination.

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