Gce Model Questions Vol1 2021 Economics Question 40
Practice objective / multiple choice question 40 from the 2021 Gce Model Questions Vol1 Economics examination.
A firm has the production function \( Q = L^{0.5}K^{0.5} \) and wishes to produce \( Q = 100 \) units. The wage rate for labour is \( w = £4 \) per unit and the rental rate for capital is \( r = £1 \) per unit. Determine the cost‑minimising quantities of labour \(L\) and capital \(K\) and the minimum total cost.
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About This Question
This is Gce Model Questions Vol1 2021 Economics Question 40. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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