Neco 2022 Economics Question 20

Practice objective / multiple choice question 20 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Hard Difficulty
Question 20 NECO • 2022 • ECONOMICS • objective

A farmer produces output \(Q\) (tons) using labour \(L\) (hours) and fertilizer \(F\) (kg) according to the Cobb‑Douglas function \( Q = 0.5 L^{0.4} F^{0.6} \). The price of labour is \(\text{₦}200\) per hour and the price of fertilizer is \(\text{₦}150\) per kg. The farmer wishes to produce exactly 100 tons at minimum cost. Find the cost‑minimising quantities of labour and fertilizer and compute the minimum total cost (in Naira).

Answer Options

A. Labour \approx 140 hours, Fertiliser \approx 240 kg, Minimum cost \approx \text{₦}68,200
Correct Answer B. Labour \approx 132 hours, Fertiliser \approx 264 kg, Minimum cost \approx \text{₦}65,983
C. Labour \approx 120 hours, Fertiliser \approx 300 kg, Minimum cost \approx \text{₦}66,500
D. Labour \approx 150 hours, Fertiliser \approx 210 kg, Minimum cost \approx \text{₦}70,000
Correct Answer
B
Correct Option:
Labour \approx 132 hours, Fertiliser \approx 264 kg, Minimum cost \approx \text{₦}65,983

About This Question

This is Neco 2022 Economics Question 20. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Hard .

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