Post Utme Uniport 2019 Economics Question 6

Practice objective / multiple choice question 6 from the 2019 Post Utme Uniport Economics examination.

Post Utme Uniport 2019 Economics Objective / Multiple Choice
Question 6 POST_UTME_UNIPORT • 2019 • 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 = ₦100 and r = ₦200, and the current output price is p = ₦500, calculate the firm's optimal input bundle (L, K) u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize its profit.

Answer Options

Correct Answer A. \( L = 100, K = 100 \)
B. \( L = 50, K = 50 \)
C. \( L = 200, K = 200 \)
D. \( L = 150, K = 150 \)
Correct Answer
A
Correct Option:
\( L = 100, K = 100 \)

About This Question

This is Post Utme Uniport 2019 Economics Question 6. It is one of the objective questions from the 2019 Post Utme Uniport Economics examination.

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