Gce Model Questions Vol1 2024 Economics Question 19

Practice objective / multiple choice question 19 from the 2024 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 19 GCE_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A firm's short‑run production function is \(Q = 20L - 0.5L^{2}\), where \(L\) denotes labour input measured in hundreds of workers and \(Q\) is output in units. The wage rate is \(₦50\) per hundred workers and the product sells for \(₦200\) per unit. Determine the value of \(L\) that maximises profit and calculate the maximum profit (in naira).

Answer Options

A. Labour L = 10 (hundreds) i.e. 1 000 workers; maximum profit ₦29 500.00
Correct Answer B. Labour L = 19.75 (hundreds) i.e. 1 975 workers; maximum profit ₦39 006.25
C. Labour L = 15 (hundreds) i.e. 1 500 workers; maximum profit ₦36 750.00
D. Labour L = 22 (hundreds) i.e. 2 200 workers; maximum profit ₦38 500.00
Correct Answer
B
Correct Option:
Labour L = 19.75 (hundreds) i.e. 1 975 workers; maximum profit ₦39 006.25

About This Question

This is Gce Model Questions Vol1 2024 Economics Question 19. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

View More Gce Model Questions Vol1 2024 Economics Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support