Waec Model Questions Vol1 2025 Economics Question 13

Practice objective / multiple choice question 13 from the 2025 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2025 Economics Objective / Multiple Choice Hard Difficulty
Question 13 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A small manufacturing firm uses labour (L) and capital (K) to produce a product. The cost of one labour unit is ₦2,000 and the cost of one capital unit is ₦8,000. However, if the firm purchases at least 10 capital units, a bulk discount reduces the price of each capital unit to ₦1,800. The firm can employ at most 80 labour units because of skill‑shortage constraints. The production function (in thousands of units) is Q = 5L + 8K. The firm must produce at least 500 thousand units. Determine the numbers of labour and capital units the firm should employ to meet the target at the minimum total cost, and state that minimum cost (in ₦).

Answer Options

A. 78 labour units and 15 capital units; minimum cost ₦183,000
Correct Answer B. 80 labour units and 13 capital units; minimum cost ₦183,400
C. 79 labour units and 14 capital units; minimum cost ₦183,200
D. 80 labour units and 12 capital units; minimum cost ₦181,600
Correct Answer
B
Correct Option:
80 labour units and 13 capital units; minimum cost ₦183,400

About This Question

This is Waec Model Questions Vol1 2025 Economics Question 13. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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