Post Utme Oau 2018 Commerce Question 32

Practice objective / multiple choice question 32 from the 2018 Post Utme Oau Commerce examination.

Post Utme Oau 2018 Commerce Objective / Multiple Choice
Question 32 POST_UTME_OAU • 2018 • COMMERCE • objective

A company's production function is given by the equation 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. 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 Oau 2018 Commerce Question 32. It is one of the objective questions from the 2018 Post Utme Oau Commerce examination.

View More Post Utme Oau 2018 Commerce Questions More Post Utme Oau 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