Waec Model Questions Vol1 2021 Geography Question 4
Practice objective / multiple choice question 4 from the 2021 Waec Model Questions Vol1 Geography examination.
An industry uses the production function Q = 10 L^{0.5} K^{0.5}, where Q is output (units), L is labour (units) and K is capital (units). Labour costs ₦200 per unit, capital costs ₦500 per unit, and fixed costs are ₦50 000. The product sells for ₦1 200 per unit. Variable costs (labour + capital) cannot exceed ₦120 000 and both L and K must be integer multiples of 10. Determine the combination of labour and capital that maximizes profit and state the maximum profit (in Naira).
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About This Question
This is Waec Model Questions Vol1 2021 Geography Question 4. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Geography examination.
Difficulty level: Hard .
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