Neco 2023 Economics Question 7

Practice objective / multiple choice question 7 from the 2023 Neco Economics examination.

Neco 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 7 NECO • 2023 • ECONOMICS • objective

A firm's total product function for labour is \(TP(L) = 5L - 0.1L^{2}\). The output price is \(P = \$50\) per unit and the wage rate is \(w = \$20\) per labour unit. Determine the number of labour units that maximises profit and compute the maximum profit.

Answer Options

A. Labour = 22 units; Maximum profit = $2640.
B. Labour = 25 units; Maximum profit = $2625.
Correct Answer C. Labour = 23 units; Maximum profit = $2645.
D. Labour = 20 units; Maximum profit = $2600.
Correct Answer
C
Correct Option:
Labour = 23 units; Maximum profit = $2645.

About This Question

This is Neco 2023 Economics Question 7. It is one of the objective questions from the 2023 Neco Economics examination.

Difficulty level: Medium .

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