Post Utme Aaua 2023 Economics Question 13

Practice objective / multiple choice question 13 from the 2023 Post Utme Aaua Economics examination.

Post Utme Aaua 2023 Economics Objective / Multiple Choice
Question 13 POST_UTME_AAUA • 2023 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?

Answer Options

A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
Correct Answer C. 10% increase in labor and 20% increase in capital
D. 20% increase in labor and 10% increase in capital
Correct Answer
C
Correct Option:
10% increase in labor and 20% increase in capital

About This Question

This is Post Utme Aaua 2023 Economics Question 13. It is one of the objective questions from the 2023 Post Utme Aaua Economics examination.

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