Post Utme Summit University 2024 Commerce Question 2

Practice objective / multiple choice question 2 from the 2024 Post Utme Summit University Commerce examination.

Post Utme Summit University 2024 Commerce Objective / Multiple Choice
Question 2 POST_UTME_SUMMIT_UNIVERSITY • 2024 • COMMERCE • objective

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what should be the percentage increase in labor (L) and capital (K)?

Answer Options

A. 10% increase in L and 10% increase in K
Correct Answer B. 20% increase in L and 20% increase in K
C. 10% increase in L and 20% increase in K
D. 20% increase in L and 10% increase in K
Correct Answer
B
Correct Option:
20% increase in L and 20% increase in K

About This Question

This is Post Utme Summit University 2024 Commerce Question 2. It is one of the objective questions from the 2024 Post Utme Summit University Commerce examination.

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