Neco 2020 Geography Question 32

Practice objective / multiple choice question 32 from the 2020 Neco Geography examination.

Neco 2020 Geography Objective / Multiple Choice Hard Difficulty
Question 32 NECO • 2020 • GEOGRAPHY • objective

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).

Answer Options

Correct Answer A. 15.44%; ₦5,327
B. 16.00%; ₦5,500
C. 15.44%; ₦4,900
D. 13.20%; ₦4,800
Correct Answer
A
Correct Option:
15.44%; ₦5,327

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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