Post Utme Nile University 2017 Economics Question 13

Practice objective / multiple choice question 13 from the 2017 Post Utme Nile University Economics examination.

Post Utme Nile University 2017 Economics Objective / Multiple Choice
Question 13 POST_UTME_NILE_UNIVERSITY • 2017 • ECONOMICS • objective

A firm's production function is given by the equation 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 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 Nile University 2017 Economics Question 13. It is one of the objective questions from the 2017 Post Utme Nile University Economics examination.

View More Post Utme Nile University 2017 Economics Questions More Post Utme Nile 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