Post Utme Veritas University 2019 Economics Question 6

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

Post Utme Veritas University 2019 Economics Objective / Multiple Choice
Question 6 POST_UTME_VERITAS_UNIVERSITY • 2019 • ECONOMICS • objective

Consider a production function given by \( Q = 100K^0.4L^0.6 \), where Q is the output, K is the capital, and L is the labor. If the price of capital is ₦100 and the price of labor is ₦50, and if the firm's objective is to maximize profit, what is the optimal combination of capital and labor?

Answer Options

A. \( K = 10, L = 20 \)
B. \( K = 20, L = 10 \)
Correct Answer C. \( K = 15, L = 15 \)
D. \( K = 25, L = 5 \)
Correct Answer
C
Correct Option:
\( K = 15, L = 15 \)

About This Question

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

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