Post Utme Igbinedion University 2021 Commerce Question 13

Practice objective / multiple choice question 13 from the 2021 Post Utme Igbinedion University Commerce examination.

Post Utme Igbinedion University 2021 Commerce Objective / Multiple Choice
Question 13 POST_UTME_IGBINEDION_UNIVERSITY • 2021 • COMMERCE • objective

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?

Answer Options

Correct Answer A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 30% increase in labor and 30% increase in capital
D. 40% increase in labor and 40% increase in capital
Correct Answer
A
Correct Option:
10% increase in labor and 10% increase in capital

About This Question

This is Post Utme Igbinedion University 2021 Commerce Question 13. It is one of the objective questions from the 2021 Post Utme Igbinedion University Commerce examination.

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