Neco 2024 Economics Question 42

Practice objective / multiple choice question 42 from the 2024 Neco Economics examination.

Neco 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 42 NECO • 2024 • ECONOMICS • objective

A firm produces output according to the Cobb‑Douglas function \(Q = 20L^{0.5}K^{0.5}\). The wage rate is ₦200 per unit of labour \(L\) and the rental rate of capital is ₦500 per unit of capital \(K\). To produce \(Q = 800\) units at minimum cost, find the cost‑minimising quantities of labour and capital (rounded to one decimal place).

Answer Options

Correct Answer A. L = 63.2, K = 25.3
B. L = 55.5, K = 30.2
C. L = 48.3, K = 38.7
D. L = 70.0, K = 20.0
Correct Answer
A
Correct Option:
L = 63.2, K = 25.3

About This Question

This is Neco 2024 Economics Question 42. It is one of the objective questions from the 2024 Neco Economics examination.

Difficulty level: Hard .

View More Neco 2024 Economics Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support