Gce Model Questions Vol1 2020 Economics Question 32

Practice objective / multiple choice question 32 from the 2020 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 32 GCE_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

Consider a firm whose total output \(Q\) (in units) as a function of labour input \(L\) (number of workers) is given by \(Q = 20L - 0.1L^{2} + 0.001L^{3}\).\n\n(a) Determine the number of workers that maximises the average product of labour.\n(b) Calculate the maximum average product.\n(c) Find the level of labour at which the marginal product of labour equals the average product.

Answer Options

Correct Answer A. a) 50 workers, b) 17.5 units per worker, c) 50 workers
B. a) 40 workers, b) 15.0 units per worker, c) 40 workers
C. a) 45 workers, b) 16.2 units per worker, c) 45 workers
D. a) 55 workers, b) 18.0 units per worker, c) 55 workers
Correct Answer
A
Correct Option:
a) 50 workers, b) 17.5 units per worker, c) 50 workers

About This Question

This is Gce Model Questions Vol1 2020 Economics Question 32. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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