Post Utme Veritas University 2019 Economics Question 9

Practice objective / multiple choice question 9 from the 2019 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2019 Economics Objective / Multiple Choice
Question 9 POST_UTME_VERITAS_UNIVERSITY • 2019 • ECONOMICS • objective

A firm is producing a good u\sing the production function \( Q = 3K^0.7L^0.3 \). If the price of the good is ₦300, the price of capital is ₦75, and the price of labor is ₦30, what is the optimal level of capital and labor if the firm wants to maximize profit?

Answer Options

A. \( K = 15, L = 5 \)
B. \( K = 10, L = 10 \)
Correct Answer C. \( K = 20, L = 5 \)
D. \( K = 25, L = 3 \)
Correct Answer
C
Correct Option:
\( K = 20, L = 5 \)

About This Question

This is Post Utme Veritas University 2019 Economics Question 9. It is one of the objective questions from the 2019 Post Utme Veritas University Economics examination.

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