Neco 2021 Economics Question 29

Practice objective / multiple choice question 29 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 29 NECO • 2021 • ECONOMICS • objective

A firm's short‑run total product function with fixed capital is given by \(Q = 10L - 0.5L^{2}\), where \(L\) denotes the number of labour units employed. (i) Compute the marginal product of labour (MPL) when \(L = 8\). (ii) Determine the total output when labour is increased to \(L = 9\). (iii) State whether the MPL calculated in part (i) correctly predicts the change in total output between \(L = 8\) and \(L = 9\).

Answer Options

A. MPL = 3; Output at L=9 = 48.5; MPL underestimates the actual increase
B. MPL = 1; Output at L=9 = 49.5; MPL overestimates the actual increase
C. MPL = 2; Output at L=9 = 50; MPL correctly predicts the actual increase
Correct Answer D. MPL = 2; Output at L=9 = 49.5; MPL overestimates the actual increase
Correct Answer
D
Correct Option:
MPL = 2; Output at L=9 = 49.5; MPL overestimates the actual increase

About This Question

This is Neco 2021 Economics Question 29. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Medium .

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