Post Utme Mountain Top University 2023 Commerce Question 27

Practice objective / multiple choice question 27 from the 2023 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2023 Commerce Objective / Multiple Choice
Question 27 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2023 • COMMERCE • objective

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

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 2023 Commerce Question 27. It is one of the objective questions from the 2023 Post Utme Mountain Top University Commerce examination.

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