Post Utme Al Hikmah University 2019 Economics Question 2

Practice objective / multiple choice question 2 from the 2019 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2019 Economics Objective / Multiple Choice
Question 2 POST_UTME_AL-HIKMAH_UNIVERSITY • 2019 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5. 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
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 Economics Question 2. It is one of the objective questions from the 2019 Post Utme Al Hikmah University Economics examination.

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