Neco Model Questions Vol1 2019 Economics Question 36
Practice objective / multiple choice question 36 from the 2019 Neco Model Questions Vol1 Economics examination.
A firm has a fixed capital input of \(K=4\) units. Its production function for output \(Q\) (in units) is \(Q = 10L - 0.5L^{2}\), where \(L\) is labour input (in units). The wage rate is \(w = \N{200}\) per unit of labour and the rental rate of capital is \(r = \N{500}\) per unit of capital. To produce exactly \(20\) units of output, what quantity of labour should the firm employ to minimise total cost, and what is that minimum total cost?
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About This Question
This is Neco Model Questions Vol1 2019 Economics Question 36. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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