Neco Model Questions Vol1 2022 Economics Question 44
Practice objective / multiple choice question 44 from the 2022 Neco Model Questions Vol1 Economics examination.
A farmer produces output according to the Cobb‑Douglas function \(Q = 10 L^{0.5} F^{0.5}\), where \(L\) is labour (units) and \(F\) is fertilizer (kg). Currently \(L=16\) and \(F=9\). The output price is \(\text{₦}200\) per unit, the wage rate is \(\text{₦}20\) per unit of labour and fertilizer costs \(\text{₦}30\) per kg.\n(a) Compute the marginal product of labour (MPL) and marginal product of fertilizer (MPF).\n(b) Compute the marginal revenue product of each input (MRPL, MRPF).\n(c) With an additional budget of \(\text{₦}500\) for extra inputs, which input should the farmer purchase to maximise profit? How many units of that input can be bought and what is the resulting increase in profit?
Answer Options
About This Question
This is Neco Model Questions Vol1 2022 Economics Question 44. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.