Post Utme Lasu 2024 Economics Question 13

Practice objective / multiple choice question 13 from the 2024 Post Utme Lasu Economics examination.

Post Utme Lasu 2024 Economics Objective / Multiple Choice
Question 13 POST_UTME_LASU • 2024 • ECONOMICS • objective

The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the firm wants to increase production by 20%, what percentage increase in labor hours and capital investment is required?

Answer Options

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

About This Question

This is Post Utme Lasu 2024 Economics Question 13. It is one of the objective questions from the 2024 Post Utme Lasu Economics examination.

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