Post Utme Covenant University 2025 Economics Question 24

Practice objective / multiple choice question 24 from the 2025 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2025 Economics Objective / Multiple Choice
Question 24 POST_UTME_COVENANT_UNIVERSITY • 2025 • ECONOMICS • objective

A firm's production function is given by Q = 100K^0.5L^0.5, where Q is the output, K is the capital and L is the labor. If the firm wants to increase its output by 10%, what percentage increase in capital and labor is required?

Answer Options

A. 5% increase in capital and 5% increase in labor
Correct Answer B. 10% increase in capital and 10% increase in labor
C. 15% increase in capital and 15% increase in labor
D. 20% increase in capital and 20% increase in labor
Correct Answer
B
Correct Option:
10% increase in capital and 10% increase in labor

About This Question

This is Post Utme Covenant University 2025 Economics Question 24. It is one of the objective questions from the 2025 Post Utme Covenant University Economics examination.

View More Post Utme Covenant University 2025 Economics Questions More Post Utme Covenant University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support