Neco 2023 Economics Question 24

Practice objective / multiple choice question 24 from the 2023 Neco Economics examination.

Neco 2023 Economics Objective / Multiple Choice Hard Difficulty
Question 24 NECO • 2023 • ECONOMICS • objective

A farmer produces wheat using labour \(L\) (units) and fertilizer \(F\) (units) with the production function \(Q = 20\sqrt{L\,F}\). The wage rate is ₦150 per unit of labour and the price of fertilizer is ₦200 per unit. The farmer wishes to produce 800 kg of wheat. (i) Find the cost‑minimising quantities of labour and fertilizer, (ii) compute the total cost, and (iii) determine the marginal cost of an additional kilogram of wheat at this output (rounded to two decimal places).

Answer Options

Correct Answer A. Labour ≈ 46.2 units, Fertiliser ≈ 34.6 units, Total cost ≈ ₦13,856, Marginal cost ≈ ₦17.32 per kg
B. Labour ≈ 50.0 units, Fertiliser ≈ 30.0 units, Total cost ≈ ₦15,000, Marginal cost ≈ ₦16.50 per kg
C. Labour ≈ 45.0 units, Fertiliser ≈ 35.0 units, Total cost ≈ ₦13,500, Marginal cost ≈ ₦17.80 per kg
D. Labour ≈ 40.0 units, Fertiliser ≈ 40.0 units, Total cost ≈ ₦14,000, Marginal cost ≈ ₦18.00 per kg
Correct Answer
A
Correct Option:
Labour ≈ 46.2 units, Fertiliser ≈ 34.6 units, Total cost ≈ ₦13,856, Marginal cost ≈ ₦17.32 per kg

About This Question

This is Neco 2023 Economics Question 24. It is one of the objective questions from the 2023 Neco Economics examination.

Difficulty level: Hard .

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