Post Utme Uniosun 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_UNIOSUN • 2020 • ECONOMICS • objective

A firm operating in a perfectly competitive market produces two goods, A and B. The production function for good A is given by Q_A = 10L^0.5H^0.5, where L and H are the inputs of labor and capital, respectively. The production function for good B is given by Q_B = 5L^0.2H^0.8. If the firm's objective is to maximize profits, which of the following statements is true?

Answer Options

A. The firm will produce more of good A than good B.
Correct Answer B. The firm will produce more of good B than good A.
C. The firm will produce equal quantities of both goods.
D. The firm will produce no goods.
Correct Answer
B
Correct Option:
The firm will produce more of good B than good A.

About This Question

This is Post Utme Uniosun 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Uniosun Economics examination.

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