Post Utme Covenant University 2018 Commerce Question 13

Practice objective / multiple choice question 13 from the 2018 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2018 Commerce Objective / Multiple Choice

Question 13 POST_UTME_COVENANT_UNIVERSITY • 2018 • COMMERCE • objective

A firm's cost function is given by C = 100 + 2L + 3K. If the price of labor increases by 15% and the price of capital increases by 10%, what is the effect on the firm's total cost?

Answer Options

A. Total cost increases by 12.5%.

B. Total cost increases by 15%.

Correct Answer C. Total cost increases by 17.5%.

D. Total cost remains unchanged.

Correct Answer

Correct Option:

Total cost increases by 17.5%.

About This Question

This is Post Utme Covenant University 2018 Commerce Question 13. It is one of the objective questions from the 2018 Post Utme Covenant University Commerce examination.

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