Post Utme Uniosun 2017 Economics Question 18

Practice objective / multiple choice question 18 from the 2017 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2017 Economics Objective / Multiple Choice
Question 18 POST_UTME_UNIOSUN • 2017 • ECONOMICS • objective

The production function for a firm is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?

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 Uniosun 2017 Economics Question 18. It is one of the objective questions from the 2017 Post Utme Uniosun Economics examination.

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