Neco 2024 Economics Question 39
Practice objective / multiple choice question 39 from the 2024 Neco Economics examination.
A firm produces output according to the Cobb‑Douglas function \(Q = L^{0.5}K^{0.5}\). The wage rate is \(w = \text{\u20A6}200\) per unit of labour and the rental rate of capital is \(r = \text{\u20A6}500\) per unit of capital. To produce \(Q = 400\) units at minimum cost, what quantities of labour \(L\) and capital \(K\) should be employed and what is the minimum cost?
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About This Question
This is Neco 2024 Economics Question 39. It is one of the objective questions from the 2024 Neco Economics examination.
Difficulty level: Medium .
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