Post Utme Osustech 2020 Commerce Question 31

Practice objective / multiple choice question 31 from the 2020 Post Utme Osustech Commerce examination.

Post Utme Osustech 2020 Commerce Objective / Multiple Choice
Question 31 POST_UTME_OSUSTECH • 2020 • COMMERCE • objective

A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 10%, what percentage increase in labor and capital is required?

Answer Options

Correct Answer A. 5% increase in labor and 5% increase in capital
B. 10% increase in labor and 10% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 20% increase in labor and 20% increase in capital
Correct Answer
A
Correct Option:
5% increase in labor and 5% increase in capital

About This Question

This is Post Utme Osustech 2020 Commerce Question 31. It is one of the objective questions from the 2020 Post Utme Osustech Commerce examination.

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