Post Utme Joseph Ayo Babalola University 2025 Economics Question 2

Practice objective / multiple choice question 2 from the 2025 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2025 Economics Objective / Multiple Choice
Question 2 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2025 • ECONOMICS • objective

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

Answer Options

A. 10% increase in labor and 10% increase in capital
Correct Answer 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
B
Correct Option:
20% increase in labor and 20% increase in capital

About This Question

This is Post Utme Joseph Ayo Babalola University 2025 Economics Question 2. It is one of the objective questions from the 2025 Post Utme Joseph Ayo Babalola University Economics examination.

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