Post Utme Mountain Top University 2019 Economics Question 28

Practice objective / multiple choice question 28 from the 2019 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2019 Economics Objective / Multiple Choice
Question 28 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is 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 Mountain Top University 2019 Economics Question 28. It is one of the objective questions from the 2019 Post Utme Mountain Top University Economics examination.

View More Post Utme Mountain Top University 2019 Economics Questions More Post Utme Mountain Top University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support