Post Utme Bowen University 2023 Commerce Question 4

Practice objective / multiple choice question 4 from the 2023 Post Utme Bowen University Commerce examination.

Post Utme Bowen University 2023 Commerce Objective / Multiple Choice
Question 4 POST_UTME_BOWEN_UNIVERSITY • 2023 • COMMERCE • objective

A company has a cost function given by C = 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the price of labor increases by 20% and the price of capital remains constant, what will be the effect on the total cost?

Answer Options

Correct Answer A. The total cost will increase by 10%
B. The total cost will decrease by 10%
C. The total cost will remain unchanged
D. The total cost will increase by 20%
Correct Answer
A
Correct Option:
The total cost will increase by 10%

About This Question

This is Post Utme Bowen University 2023 Commerce Question 4. It is one of the objective questions from the 2023 Post Utme Bowen University Commerce examination.

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