Waec Model Questions Vol1 2021 Economics Question 20

Practice objective / multiple choice question 20 from the 2021 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 20 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

A firm produces widgets with the Cobb‑Douglas production function \(Q = 4 L^{0.5} K^{0.5}\), where \(L\) is labour hours and \(K\) is units of capital. The output price is ₦200 per unit, the wage rate is ₦20 per labour hour and the rental rate of capital is ₦80 per unit. To produce exactly 160 widgets, determine the cost‑minimising quantities of labour and capital and compute the minimum total cost.

Answer Options

A. Labour = 100 hours, Capital = 10 units; minimum total cost = ₦2,800
Correct Answer B. Labour = 80 hours, Capital = 20 units; minimum total cost = ₦3,200
C. Labour = 70 hours, Capital = 25 units; minimum total cost = ₦3,400
D. Labour = 60 hours, Capital = 30 units; minimum total cost = ₦3,600
Correct Answer
B
Correct Option:
Labour = 80 hours, Capital = 20 units; minimum total cost = ₦3,200

About This Question

This is Waec Model Questions Vol1 2021 Economics Question 20. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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