Post Utme Lautech 2025 Economics Question 4

Practice objective / multiple choice question 4 from the 2025 Post Utme Lautech Economics examination.

Post Utme Lautech 2025 Economics Objective / Multiple Choice
Question 4 POST_UTME_LAUTECH • 2025 • ECONOMICS • objective

U\sing the production function \( Q = 2K^0.5L^0.5 \), determine the returns to scale if the output increases by 20% when the capital and labor inputs are increased by 10% each.

Answer Options

Correct Answer A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. No returns to scale
Correct Answer
A
Correct Option:
Increa\sing returns to scale

About This Question

This is Post Utme Lautech 2025 Economics Question 4. It is one of the objective questions from the 2025 Post Utme Lautech Economics examination.

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