Gce Model Questions Vol1 2022 Economics Question 35

Practice objective / multiple choice question 35 from the 2022 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 35 GCE_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

A firm's production function is \(Q = 20L - 0.5L^{2}\), where \(L\) is the number of labour units employed. The wage rate is £10 per labour unit and the output price is £30 per unit. Find the labour input that maximises profit and the corresponding maximum profit (rounded to the nearest pound).

Answer Options

A. Labour ≈ 22.5 units; Maximum profit ≈ £6,150
B. Labour ≈ 20.0 units; Maximum profit ≈ £5,800
Correct Answer C. Labour ≈ 19.7 units; Maximum profit ≈ £5,802
D. Labour ≈ 15.3 units; Maximum profit ≈ £4,210
Correct Answer
C
Correct Option:
Labour ≈ 19.7 units; Maximum profit ≈ £5,802

About This Question

This is Gce Model Questions Vol1 2022 Economics Question 35. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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