Waec Model Questions Vol1 2018 Economics Question 13

Practice objective / multiple choice question 13 from the 2018 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 13 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

A factory produces widgets according to the total product function TP = 20L - 0.5L², where L is the number of workers employed. Fixed capital cost is ₦20,000 per month and each worker is paid a wage of ₦5,000 per month. The market price of a widget is ₦500. Determine the number of workers that maximises profit and state the maximum profit.

Answer Options

A. 8 workers; Maximum profit = ₦4,000
B. 15 workers; Maximum profit = ₦2,500
C. 12 workers; Maximum profit = ₦6,000
Correct Answer D. 10 workers; Maximum profit = ₦5,000
Correct Answer
D
Correct Option:
10 workers; Maximum profit = ₦5,000

About This Question

This is Waec Model Questions Vol1 2018 Economics Question 13. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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