Neco 2020 Economics Question 31

Practice objective / multiple choice question 31 from the 2020 Neco Economics examination.

Neco 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 31 NECO • 2020 • ECONOMICS • objective

Given the production function \( TP = 5L + 0.2L^{2} - 0.001L^{3} \) where \(L\) is the number of labour units, the firm wishes to produce the level of output at which average product (AP) is maximised. Determine the number of labour units that yields the maximum AP and compute that maximum AP value.

Answer Options

A. Labour units = 90; Maximum AP = 16 units per labour
Correct Answer B. Labour units = 100; Maximum AP = 15 units per labour
C. Labour units = 120; Maximum AP = 14 units per labour
D. Labour units = 80; Maximum AP = 13 units per labour
Correct Answer
B
Correct Option:
Labour units = 100; Maximum AP = 15 units per labour

About This Question

This is Neco 2020 Economics Question 31. It is one of the objective questions from the 2020 Neco Economics examination.

Difficulty level: Medium .

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