Post Utme Covenant University 2018 Commerce Question 15

Practice objective / multiple choice question 15 from the 2018 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2018 Commerce Objective / Multiple Choice

Question 15 POST_UTME_COVENANT_UNIVERSITY • 2018 • COMMERCE • objective

A firm's profit function is given by Φ = R - C. If the price of the firm's product increases by 15% and the price of labor increases by 10%, what is the effect on the firm's profit?

Answer Options

A. Profit increases by 12.5%.

B. Profit increases by 15%.

Correct Answer C. Profit increases by 17.5%.

D. Profit remains unchanged.

Correct Answer

Correct Option:

Profit increases by 17.5%.

About This Question

This is Post Utme Covenant University 2018 Commerce Question 15. It is one of the objective questions from the 2018 Post Utme Covenant University Commerce examination.

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