Post Utme Covenant University 2020 Commerce Question 2

Practice objective / multiple choice question 2 from the 2020 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2020 Commerce Objective / Multiple Choice
Question 2 POST_UTME_COVENANT_UNIVERSITY • 2020 • COMMERCE • objective

A company's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new production level?

Answer Options

Correct Answer A. Q = 1.2L^0.5K^0.5
B. Q = 1.15L^0.5K^0.5
C. Q = 1.2L^0.5K^0.5 + 1.15K^0.5
D. Q = 1.2L^0.5K^0.5 - 1.15K^0.5
Correct Answer
A
Correct Option:
Q = 1.2L^0.5K^0.5

About This Question

This is Post Utme Covenant University 2020 Commerce Question 2. It is one of the objective questions from the 2020 Post Utme Covenant University Commerce examination.

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