Neco 2019 Economics Question 37

Practice objective / multiple choice question 37 from the 2019 Neco Economics examination.

Neco 2019 Economics Objective / Multiple Choice Hard Difficulty
Question 37 NECO • 2019 • ECONOMICS • objective

A farmer uses labour (L hours) and fertilizer (F kg) to produce output according to the production function \(TP = 20\sqrt{L\,F}\). The output price is \(\text{₦}150\) per unit. Labour costs \(\text{₦}30\) per hour and fertilizer costs \(\text{₦}20\) per kg. The farmer has a total input budget of \(\text{₦}2400\). Determine the combination of labour hours and fertilizer kilograms that maximises profit and state the maximum profit (give the exact expression and its approximate value).

Answer Options

A. Labour = 30 hours, Fertiliser = 80 kg; Maximum profit = 48000\\sqrt{6} - 2400 ≈ ₦115,200
Correct Answer B. Labour = 40 hours, Fertiliser = 60 kg; Maximum profit = 60000\sqrt{6} - 2400 ≈ ₦144,570
C. Labour = 50 hours, Fertiliser = 50 kg; Maximum profit = 75000\\sqrt{5} - 2400 ≈ ₦158,000
D. Labour = 45 hours, Fertiliser = 55 kg; Maximum profit = 66000\\sqrt{7} - 2400 ≈ ₦130,500
Correct Answer
B
Correct Option:
Labour = 40 hours, Fertiliser = 60 kg; Maximum profit = 60000\sqrt{6} - 2400 ≈ ₦144,570

About This Question

This is Neco 2019 Economics Question 37. It is one of the objective questions from the 2019 Neco Economics examination.

Difficulty level: Hard .

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