Post Utme Unn 2023 Commerce Question 23

Practice objective / multiple choice question 23 from the 2023 Post Utme Unn Commerce examination.

Post Utme Unn 2023 Commerce Objective / Multiple Choice
Question 23 POST_UTME_UNN • 2023 • 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 is the required increase in labor and capital?

Answer Options

A. 10% increase in labor and 10% increase in capital
Correct Answer B. 20% increase in labor and 20% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 25% increase in labor and 25% increase in capital
Correct Answer
B
Correct Option:
20% increase in labor and 20% increase in capital

About This Question

This is Post Utme Unn 2023 Commerce Question 23. It is one of the objective questions from the 2023 Post Utme Unn Commerce examination.

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