Post Utme Uniosun 2020 Economics Question 6

Practice objective / multiple choice question 6 from the 2020 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2020 Economics Objective / Multiple Choice

Question 6 POST_UTME_UNIOSUN • 2020 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is 100L + 200K = 1000, determine the optimal values of L and K.

Answer Options

Correct Answer A. L = 10, K = 5

B. L = 5, K = 10

C. L = 20, K = 2

D. L = 2, K = 20

Correct Answer

Correct Option:

L = 10, K = 5

About This Question

This is Post Utme Uniosun 2020 Economics Question 6. It is one of the objective questions from the 2020 Post Utme Uniosun Economics examination.

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