Post Utme Achievers University 2019 Commerce Question 9
Practice objective / multiple choice question 9 from the 2019 Post Utme Achievers University Commerce examination.
A firm has a production process that involves two stages: Stage 1 and Stage 2. The production function for Stage 1 is given by Q1 = 2L1^0.5H1^0.5, where Q1 is the output of Stage 1, L1 is labor in Stage 1, and H1 is capital in Stage 1. The production function for Stage 2 is given by Q2 = 2L2^0.5H2^0.5, where Q2 is the output of Stage 2, L2 is labor in Stage 2, and H2 is capital in Stage 2. If the firm wants to increase the output of Stage 1 by 20% while keeping labor constant, what percentage increase in capital is required for Stage 1?
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About This Question
This is Post Utme Achievers University 2019 Commerce Question 9. It is one of the objective questions from the 2019 Post Utme Achievers University Commerce examination.
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