Post Utme Veritas University 2017 Economics Question 1

Practice objective / multiple choice question 1 from the 2017 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2017 Economics Objective / Multiple Choice
Question 1 POST_UTME_VERITAS_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w = 10 and r = 20, and the current output price is p = 30, calculate the firm's optimal input mix (L, H) u\sing the Lagrange method, assuming a cons\tant returns to scale production techno\logy.

Answer Options

Correct Answer A. \( L = 100, H = 100 \)
B. \( L = 50, H = 50 \)
C. \( L = 200, H = 200 \)
D. \( L = 25, H = 25 \)
Correct Answer
A
Correct Option:
\( L = 100, H = 100 \)

About This Question

This is Post Utme Veritas University 2017 Economics Question 1. It is one of the objective questions from the 2017 Post Utme Veritas University Economics examination.

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