Post Utme Al Hikmah University 2021 Commerce Question 40

Practice objective / multiple choice question 40 from the 2021 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2021 Commerce Objective / Multiple Choice
Question 40 POST_UTME_AL-HIKMAH_UNIVERSITY • 2021 • COMMERCE • objective

A company's production function is given by the equation 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 percentage increase in labor and capital is required?

Answer Options

Correct Answer A. 10% increase in labor and 10% increase in capital.
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
A
Correct Option:
10% increase in labor and 10% increase in capital.

About This Question

This is Post Utme Al Hikmah University 2021 Commerce Question 40. It is one of the objective questions from the 2021 Post Utme Al Hikmah University Commerce examination.

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