Post Utme Uniben 2018 Economics Question 39

Practice objective / multiple choice question 39 from the 2018 Post Utme Uniben Economics examination.

Post Utme Uniben 2018 Economics Objective / Multiple Choice
Question 39 POST_UTME_UNIBEN • 2018 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given production function \( Q = 2K^{1/3}L^{2/3} \). If the firm's current input prices are \( w = 10 \) and \( r = 20 \), and the firm's current output price is \( p = 30 \), calculate the firm's optimal input mix and output level u\sing the Lagrange method. Assume that the firm's objective is to maximize profits.

Answer Options

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

About This Question

This is Post Utme Uniben 2018 Economics Question 39. It is one of the objective questions from the 2018 Post Utme Uniben Economics examination.

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