Neco 2018 Economics Question 26

Practice objective / multiple choice question 26 from the 2018 Neco Economics examination.

Neco 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 26 NECO • 2018 • ECONOMICS • objective

Total product (TP) of a firm is given by \( TP = 6L - 0.2L^{2} + 0.01L^{3} \), where \(L\) is the number of labour units employed.\n\n(a) Determine the labour input at which average product (AP) is maximised.\n\n(b) Calculate the maximum average product and the marginal product (MP) at that labour level.

Answer Options

Correct Answer A. Labour \(L = 10\) units; maximum average product = 5 units per labour; marginal product at that point = 5 units.
B. Labour \\(L = 12\\) units; maximum average product = 5.2 units per labour; marginal product at that point = 5.2 units.
C. Labour \\(L = 10\\) units; maximum average product = 4.5 units per labour; marginal product at that point = 4.5 units.
D. Labour \\(L = 8\\) units; maximum average product = 4.8 units per labour; marginal product at that point = 4.8 units.
Correct Answer
A
Correct Option:
Labour \(L = 10\) units; maximum average product = 5 units per labour; marginal product at that point = 5 units.

About This Question

This is Neco 2018 Economics Question 26. It is one of the objective questions from the 2018 Neco Economics examination.

Difficulty level: Medium .

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