Gce Model Questions Vol1 2025 Economics Question 44

Practice objective / multiple choice question 44 from the 2025 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 44 GCE_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A firm produces output according to the production function \(Q = \sqrt{K L}\). It wishes to produce \(Q = 100\) units. The price of capital is ₦5 per unit and the wage rate is ₦20 per unit of labour. Find the cost‑minimising quantities of capital \(K\) and labour \(L\) and the corresponding minimum total cost.

Answer Options

A. K = 250, L = 40, minimum cost = 2250
Correct Answer B. K = 200, L = 50, minimum cost = 2000
C. K = 180, L = 55, minimum cost = 1900
D. K = 160, L = 62.5, minimum cost = 2100
Correct Answer
B
Correct Option:
K = 200, L = 50, minimum cost = 2000

About This Question

This is Gce Model Questions Vol1 2025 Economics Question 44. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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