Neco 2020 Geography Question 32
Practice objective / multiple choice question 32 from the 2020 Neco Geography examination.
A factory's output of steel rods follows the production function \( Q = 5L^{0.6}K^{0.4} \), where \(L\) is the number of labour‑hours per week and \(K\) is the number of capital units (machines) employed.\n\nAt present the factory uses \(L = 200\) h and \(K = 50\) units.\n\n(a) If labour is increased by 20 % and capital by 10 %, calculate the percentage increase in output \(Q\), giving your answer to two decimal places.\n\n(b) The market price of a rod is ₦150 and the variable cost per rod is ₦90. Determine whether the increase in output raises the weekly profit, and if so, by how much (in ₦, rounded to the nearest naira).
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About This Question
This is Neco 2020 Geography Question 32. It is one of the objective questions from the 2020 Neco Geography examination.
Difficulty level: Hard .
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