Post Utme Osustech 2025 Economics Question 8

Practice objective / multiple choice question 8 from the 2025 Post Utme Osustech Economics examination.

Post Utme Osustech 2025 Economics Objective / Multiple Choice
Question 8 POST_UTME_OSUSTECH • 2025 • ECONOMICS • objective

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20%, how much should it increase its labor and capital?

Answer Options

Correct Answer A. L increases by 10%, K increases by 10%
B. L increases by 20%, K increases by 20%
C. L increases by 10%, K increases by 20%
D. L increases by 20%, K increases by 10%
Correct Answer
A
Correct Option:
L increases by 10%, K increases by 10%

About This Question

This is Post Utme Osustech 2025 Economics Question 8. It is one of the objective questions from the 2025 Post Utme Osustech Economics examination.

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