Neco 2023 Economics Question 50
Practice objective / multiple choice question 50 from the 2023 Neco Economics examination.
A factory produces output according to the Cobb‑Douglas function \(Q = 0.5 L^{0.5} K^{0.5}\), where \(L\) is labour (workers) and \(K\) is capital, fixed at \(K = 100\) units. The wage rate is \(w = 20\) ₦ per worker per day and the output price is \(p = 200\) ₦ per unit. Assuming labour can be hired in fractional units, determine the number of workers that maximises profit and compute the profit at that labour level.
Answer Options
About This Question
This is Neco 2023 Economics Question 50. It is one of the objective questions from the 2023 Neco Economics examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.