Post Utme Unilag 2017 Economics Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Unilag Economics examination.

Post Utme Unilag 2017 Economics Objective / Multiple Choice
Question 6 POST_UTME_UNILAG • 2017 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, calculate the firm's optimal input bundle (L, K) u\sing the Hotelling's Lemma. Assume that the firm's output price is p = 50.

Answer Options

Correct Answer A. (L, K) = (4, 16)
B. (L, K) = (16, 4)
C. (L, K) = (8, 8)
D. (L, K) = (2, 32)
Correct Answer
A
Correct Option:
(L, K) = (4, 16)

About This Question

This is Post Utme Unilag 2017 Economics Question 6. It is one of the objective questions from the 2017 Post Utme Unilag Economics examination.

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