Post Utme Veritas University 2021 Economics Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2021 Economics Objective / Multiple Choice
Question 11 POST_UTME_VERITAS_UNIVERSITY • 2021 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5 K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, find the optimal values of L and K.

Answer Options

A. L = 100, K = 25
Correct Answer B. L = 50, K = 50
C. L = 25, K = 100
D. L = 10, K = 200
Correct Answer
B
Correct Option:
L = 50, K = 50

About This Question

This is Post Utme Veritas University 2021 Economics Question 11. It is one of the objective questions from the 2021 Post Utme Veritas University Economics examination.

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