Post Utme Unilag 2022 Economics Question 24

Practice objective / multiple choice question 24 from the 2022 Post Utme Unilag Economics examination.

Post Utme Unilag 2022 Economics Objective / Multiple Choice
Question 24 POST_UTME_UNILAG • 2022 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5. The firm's \cost function is given by C = 10L + 20K. What is the firm's profit-maximizing level of labor and capital?

Answer Options

Correct Answer A. The profit-maximizing level of labor is 100 units and the profit-maximizing level of capital is 100 units.
B. The profit-maximizing level of labor is 200 units and the profit-maximizing level of capital is 200 units.
C. The profit-maximizing level of labor is 300 units and the profit-maximizing level of capital is 300 units.
D. The profit-maximizing level of labor is 400 units and the profit-maximizing level of capital is 400 units.
Correct Answer
A
Correct Option:
The profit-maximizing level of labor is 100 units and the profit-maximizing level of capital is 100 units.

About This Question

This is Post Utme Unilag 2022 Economics Question 24. It is one of the objective questions from the 2022 Post Utme Unilag Economics examination.

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