Post Utme Lead City University 2017 Economics Question 38

Practice objective / multiple choice question 38 from the 2017 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2017 Economics Objective / Multiple Choice
Question 38 POST_UTME_LEAD_CITY_UNIVERSITY • 2017 • ECONOMICS • objective

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

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 Lead City University 2017 Economics Question 38. It is one of the objective questions from the 2017 Post Utme Lead City University Economics examination.

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