Post Utme Ims U 2019 Economics Question 28

Practice objective / multiple choice question 28 from the 2019 Post Utme Ims U Economics examination.

Post Utme Ims U 2019 Economics Objective / Multiple Choice

Question 28 POST_UTME_IMS_U • 2019 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what is the percentage change in output?

A. Output increases by 12%.

B. Output increases by 15%.

Correct Answer C. Output increases by 18%.

D. Output increases by 20%.

Correct Answer

Correct Option:

Output increases by 18%.

This is Post Utme Ims U 2019 Economics Question 28. It is one of the objective questions from the 2019 Post Utme Ims U Economics examination.

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