Post Utme Rhema University 2023 Economics Question 44

Practice objective / multiple choice question 44 from the 2023 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2023 Economics Objective / Multiple Choice
Question 44 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 current input prices are w = ₦200 and r = ₦400, and the current output price is p = ₦800, calculate the firm's optimal input mix (L, K) u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize profits.

Answer Options

Correct Answer A. L = 200, K = 100
B. L = 100, K = 200
C. L = 250, K = 100
D. L = 100, K = 250
Correct Answer
A
Correct Option:
L = 200, K = 100

About This Question

This is Post Utme Rhema University 2023 Economics Question 44. It is one of the objective questions from the 2023 Post Utme Rhema University Economics examination.

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