Post Utme Unn 2020 Economics Question 30
Practice objective / multiple choice question 30 from the 2020 Post Utme Unn Economics examination.
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. The firm's objective is to maximize profits, which are given by π = PQL - WL - RK, where P is the price of the good, W is the wage rate, and R is the rental rate of capital. Assuming that the price of the good is cons\tant and the wage rate and rental rate are fixed, what is the optimal level of labor and capital?
Answer Options
About This Question
This is Post Utme Unn 2020 Economics Question 30. It is one of the objective questions from the 2020 Post Utme Unn Economics examination.
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.