Neco 2024 Economics Question 21

Practice objective / multiple choice question 21 from the 2024 Neco Economics examination.

Neco 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 21 NECO • 2024 • ECONOMICS • objective

A farmer uses labour (L units) and fertilizer (F kg) to produce a crop. The production function is \( Q = 10 L^{0.5} F^{0.3} \). The market price of the crop is ₦500 per unit. Labour costs ₦200 per unit and fertilizer costs ₦150 per kg. The farmer has a total budget of ₦30,000 for these inputs. Determine the combination of L and F that maximizes profit and compute the maximum profit.

Answer Options

A. Labour = 93.75 units, Fertiliser = 65 kg, Maximum profit = ₦140,000
B. Labour = 100 units, Fertiliser = 70 kg, Maximum profit = ₦150,000
C. Labour = 85 units, Fertiliser = 80 kg, Maximum profit = ₦140,500
Correct Answer D. Labour = 93.75 units, Fertiliser = 75 kg, Maximum profit = ₦146,700
Correct Answer
D
Correct Option:
Labour = 93.75 units, Fertiliser = 75 kg, Maximum profit = ₦146,700

About This Question

This is Neco 2024 Economics Question 21. It is one of the objective questions from the 2024 Neco Economics examination.

Difficulty level: Hard .

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