Post Utme Unn 2023 Economics Question 9

Practice objective / multiple choice question 9 from the 2023 Post Utme Unn Economics examination.

Post Utme Unn 2023 Economics Objective / Multiple Choice
Question 9 POST_UTME_UNN • 2023 • ECONOMICS • objective

A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. U\sing the concept of returns to scale, explain why the firm's production will increase or decrease as the inputs of labor and capital increase.

Answer Options

Correct Answer A. The firm's production will increase as the inputs of labor and capital increase.
B. The firm's production will decrease as the inputs of labor and capital increase.
C. The firm's production will remain cons\tant as the inputs of labor and capital increase.
D. The firm's production will increase as the inputs of labor increase, but decrease as the inputs of capital increase.
Correct Answer
A
Correct Option:
The firm's production will increase as the inputs of labor and capital increase.

About This Question

This is Post Utme Unn 2023 Economics Question 9. It is one of the objective questions from the 2023 Post Utme Unn Economics examination.

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