Post Utme Summit University 2019 Economics Question 5

Practice objective / multiple choice question 5 from the 2019 Post Utme Summit University Economics examination.

Post Utme Summit University 2019 Economics Objective / Multiple Choice
Question 5 POST_UTME_SUMMIT_UNIVERSITY • 2019 • ECONOMICS • objective

A firm is considering a production function given by Q = 2L^2 + 5K, where Q is output, L is labor, and K is capital. If the firm's current production is Q = 100, and the firm wants to increase production by 20%, what is the required increase in labor and capital?

Answer Options

Correct Answer A. Increase labor by 10, increase capital by 5
B. Increase labor by 5, increase capital by 10
C. Increase labor by 15, increase capital by 15
D. Increase labor by 20, increase capital by 20
Correct Answer
A
Correct Option:
Increase labor by 10, increase capital by 5

About This Question

This is Post Utme Summit University 2019 Economics Question 5. It is one of the objective questions from the 2019 Post Utme Summit University Economics examination.

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