Gce Model Questions Vol1 2023 Economics Question 11

Practice objective / multiple choice question 11 from the 2023 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 11 GCE_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

A firm's total product (TP) from labour L (in units) is given by \( TP = 2L^{2} - 0.1L^{3} \). \(AP\) is average product and \(MP\) is marginal product of labour.\n(a) Find the labour input at which \(AP\) is maximised.\n(b) Calculate the \(MP\) at that labour level.\n(c) State whether the firm is experiencing increasing, constant or diminishing marginal returns at that point.

Answer Options

A. Labour = 8 units; MP = 12; increasing marginal returns
B. Labour = 10 units; MP = 12; increasing marginal returns
Correct Answer C. Labour = 10 units; MP = 10; diminishing marginal returns
D. Labour = 12 units; MP = 8; constant marginal returns
Correct Answer
C
Correct Option:
Labour = 10 units; MP = 10; diminishing marginal returns

About This Question

This is Gce Model Questions Vol1 2023 Economics Question 11. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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