Neco 2020 Geography Question 7
Practice objective / multiple choice question 7 from the 2020 Neco Geography examination.
The output \(Q\) (units) of a factory is modelled by the Cobb‑Douglas function \(Q = 5L^{0.6}K^{0.4}\), where \(L\) is the number of labour‑hours employed and \(K\) is the number of capital units. Initially \(L = 200\) and \(K = 50\).\n\n(a) Management increases labour by 20 % while keeping capital unchanged. Calculate the percentage increase in output.\n\n(b) The factory now wishes to achieve a total output increase of 30 % relative to the original output, while keeping the labour at its new level. What percentage increase in capital is required? Give your answer to one decimal place.
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About This Question
This is Neco 2020 Geography Question 7. It is one of the objective questions from the 2020 Neco Geography examination.
Difficulty level: Hard .
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