Post Utme Rhema University 2024 Economics Question 33

Practice objective / multiple choice question 33 from the 2024 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2024 Economics Objective / Multiple Choice
Question 33 POST_UTME_RHEMA_UNIVERSITY • 2024 • 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

Correct Answer A. 10% increase in labor and 10% increase in capital
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
A
Correct Option:
10% increase in labor and 10% increase in capital

About This Question

This is Post Utme Rhema University 2024 Economics Question 33. It is one of the objective questions from the 2024 Post Utme Rhema University Economics examination.

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