Neco Model Questions Vol1 2024 Geography Question 37

Practice objective / multiple choice question 37 from the 2024 Neco Model Questions Vol1 Geography examination.

Neco Model Questions Vol1 2024 Geography Objective / Multiple Choice Hard Difficulty
Question 37 NECO_MODEL_QUESTIONS_VOL1 • 2024 • GEOGRAPHY • objective

A small factory produces 2,000 units per month using 40 workers and 5 machines. When the number of workers is increased to 50 while the number of machines remains the same, output rises to 2,400 units. Assuming a linear relationship between labour and output (machines constant), (a) find the marginal product of labour (units per additional worker), (b) compute the additional monthly labour cost if each worker costs ₦30,000, and (c) determine the change in average cost per unit after the increase.

Answer Options

Correct Answer A. MPL = 40 units/worker; additional labour cost = ₦300,000; average cost decreases by ₦25 per unit
B. MPL = 40 units\/worker; additional labour cost = ₦400,000; average cost decreases by ₦25 per unit
C. MPL = 40 units\/worker; additional labour cost = ₦300,000; average cost decreases by ₦30 per unit
D. MPL = 30 units\/worker; additional labour cost = ₦300,000; average cost decreases by ₦20 per unit
Correct Answer
A
Correct Option:
MPL = 40 units/worker; additional labour cost = ₦300,000; average cost decreases by ₦25 per unit

About This Question

This is Neco Model Questions Vol1 2024 Geography Question 37. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Geography examination.

Difficulty level: Hard .

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