Post Utme Mountain Top University 2025 Economics Question 10

Practice objective / multiple choice question 10 from the 2025 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2025 Economics Objective / Multiple Choice
Question 10 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2025 • 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
B. 15% increase in labor and 15% increase in capital
Correct Answer C. 20% increase in labor and 20% increase in capital
D. 25% increase in labor and 25% increase in capital
Correct Answer
C
Correct Option:
20% increase in labor and 20% increase in capital

About This Question

This is Post Utme Mountain Top University 2025 Economics Question 10. It is one of the objective questions from the 2025 Post Utme Mountain Top University Economics examination.

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