Post Utme Abu 2021 Economics Question 3

Practice objective / multiple choice question 3 from the 2021 Post Utme Abu Economics examination.

Post Utme Abu 2021 Economics Objective / Multiple Choice
Question 3 POST_UTME_ABU • 2021 • ECONOMICS • objective

A firm's production function is given by Q = 10L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20%, how much should it increase labor and capital?

Answer Options

Correct Answer A. Increase labor by 10% and capital by 10%
B. Increase labor by 20% and capital by 20%
C. Increase labor by 30% and capital by 30%
D. Increase labor by 40% and capital by 40%
Correct Answer
A
Correct Option:
Increase labor by 10% and capital by 10%

About This Question

This is Post Utme Abu 2021 Economics Question 3. It is one of the objective questions from the 2021 Post Utme Abu Economics examination.

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