Post Utme Covenant University 2018 Commerce Question 12

Practice objective / multiple choice question 12 from the 2018 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2018 Commerce Objective / Multiple Choice

Question 12 POST_UTME_COVENANT_UNIVERSITY • 2018 • COMMERCE • objective

A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20%, what is the effect on the firm's output?

Answer Options

A. Output increases by 10%.

Correct Answer B. Output decreases by 10%.

C. Output remains unchanged.

D. Output increases by 20%.

Correct Answer

Correct Option:

Output decreases by 10%.

About This Question

This is Post Utme Covenant University 2018 Commerce Question 12. It is one of the objective questions from the 2018 Post Utme Covenant University Commerce examination.

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