Waec Model Questions Vol1 2019 Economics Question 49

Practice objective / multiple choice question 49 from the 2019 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2019 Economics Objective / Multiple Choice Hard Difficulty
Question 49 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

A firm produces widgets using labor (L) and capital (K) with the Cobb‑Douglas production function $Q = 4 L^{0.5} K^{0.5}$. The market price of a widget is ₦120. The wage rate is ₦30 per unit of labor and the rental rate of capital is ₦20 per unit. The firm wants to produce exactly 64 widgets at minimum cost. Determine the cost‑minimising quantities of labor and capital (L and K) and compute the total cost. Give your answer rounded to two decimal places.

Answer Options

A. L = 12.00, K = 20.00, Total Cost = 760.00
B. L = 14.00, K = 18.00, Total Cost = 780.00
Correct Answer C. L = 13.06, K = 19.60, Total Cost = 783.80
D. L = 10.00, K = 22.00, Total Cost = 740.00
Correct Answer
C
Correct Option:
L = 13.06, K = 19.60, Total Cost = 783.80

About This Question

This is Waec Model Questions Vol1 2019 Economics Question 49. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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