Post Utme Madonna University 2023 Economics Question 3

Practice objective / multiple choice question 3 from the 2023 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2023 Economics Objective / Multiple Choice
Question 3 POST_UTME_MADONNA_UNIVERSITY • 2023 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5. 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. 15% increase in labor and 15% increase in capital
D. 25% increase in labor and 25% increase in capital
Correct Answer
B
Correct Option:
20% increase in labor and 20% increase in capital

About This Question

This is Post Utme Madonna University 2023 Economics Question 3. It is one of the objective questions from the 2023 Post Utme Madonna University Economics examination.

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