Post Utme Babcock University 2019 Economics Question 10

Practice objective / multiple choice question 10 from the 2019 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2019 Economics Objective / Multiple Choice
Question 10 POST_UTME_BABCOCK_UNIVERSITY • 2019 • ECONOMICS • objective

A firm's \cost function is given by C = 2L + 3K, where C is the total \cost, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15%, respectively, what is the percentage change in the firm's total \cost?

Answer Options

A. The total \cost increases by 10%
B. The total \cost increases by 15%
Correct Answer C. The total \cost increases by 20%
D. The total \cost increases by 25%
Correct Answer
C
Correct Option:
The total \cost increases by 20%

About This Question

This is Post Utme Babcock University 2019 Economics Question 10. It is one of the objective questions from the 2019 Post Utme Babcock University Economics examination.

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