Post Utme Al Hikmah University 2019 Commerce Question 32

Practice objective / multiple choice question 32 from the 2019 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2019 Commerce Objective / Multiple Choice
Question 32 POST_UTME_AL-HIKMAH_UNIVERSITY • 2019 • COMMERCE • objective

A company has a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its output by 20%, what percentage increase in labor and capital inputs is required?

Answer Options

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

About This Question

This is Post Utme Al Hikmah University 2019 Commerce Question 32. It is one of the objective questions from the 2019 Post Utme Al Hikmah University Commerce examination.

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