Post Utme Veritas University 2025 Economics Question 31

Practice objective / multiple choice question 31 from the 2025 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2025 Economics Objective / Multiple Choice
Question 31 POST_UTME_VERITAS_UNIVERSITY • 2025 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 30, calculate the firm's optimal input bundle (L, H) u\sing the Lagrange method. What is the value of the Lagrange multiplier?

Answer Options

Correct Answer A. \( lambda = 0.5, L = 4, H = 4 \)
B. \( lambda = 1, L = 2, H = 2 \)
C. \( lambda = 0.25, L = 16, H = 16 \)
D. \( lambda = 0.75, L = 8, H = 8 \)
Correct Answer
A
Correct Option:
\( lambda = 0.5, L = 4, H = 4 \)

About This Question

This is Post Utme Veritas University 2025 Economics Question 31. It is one of the objective questions from the 2025 Post Utme Veritas University Economics examination.

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