Post Utme Veritas University 2018 Economics Question 34

Practice objective / multiple choice question 34 from the 2018 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2018 Economics Objective / Multiple Choice
Question 34 POST_UTME_VERITAS_UNIVERSITY • 2018 • ECONOMICS • objective

A firm produces a good u\sing a production function Q = 100 + 2L + 3K, where Q is the quantity produced, L is the labor used, and K is the capital used. The firm's \cost function is C(L, K) = 10L + 20K, where C is the total \cost. Find the firm's profit function and the optimal quantities of labor and capital to use.

Answer Options

A. Profit function: π(L, K) = 90 + 2L + 3K, Optimal quantities: L = 50, K = 20
Correct Answer B. Profit function: π(L, K) = 100 + 2L + 3K, Optimal quantities: L = 60, K = 25
C. Profit function: π(L, K) = 110 + 2L + 3K, Optimal quantities: L = 70, K = 30
D. Profit function: π(L, K) = 120 + 2L + 3K, Optimal quantities: L = 80, K = 35
Correct Answer
B
Correct Option:
Profit function: π(L, K) = 100 + 2L + 3K, Optimal quantities: L = 60, K = 25

About This Question

This is Post Utme Veritas University 2018 Economics Question 34. It is one of the objective questions from the 2018 Post Utme Veritas University Economics examination.

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