Post Utme Rhema University 2023 Economics Question 25

Practice objective / multiple choice question 25 from the 2023 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2023 Economics Objective / Multiple Choice
Question 25 POST_UTME_RHEMA_UNIVERSITY • 2023 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's input prices are w = ₦100 per unit of labor and r = ₦200 per unit of capital, what is the firm's optimal input bundle?

Answer Options

A. 10 units of labor and 20 units of capital
Correct Answer B. 20 units of labor and 10 units of capital
C. 30 units of labor and 15 units of capital
D. 40 units of labor and 25 units of capital
Correct Answer
B
Correct Option:
20 units of labor and 10 units of capital

About This Question

This is Post Utme Rhema University 2023 Economics Question 25. It is one of the objective questions from the 2023 Post Utme Rhema University Economics examination.

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