Waec Model Questions Vol1 2020 Economics Question 25

Practice objective / multiple choice question 25 from the 2020 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 25 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

A firm produces output Q = L^{0.5} K^{0.5} where L is labour hours and K is units of capital. Input prices are wage w = ₦200 per labour hour and rental rate r = ₦500 per unit of capital. To produce Q = 100 units, find the cost‑minimising quantities of labour and capital and compute the minimum total cost (in ₦).

Answer Options

Correct Answer A. Labour ≈158 hours, Capital ≈63 units, Total cost ≈₦63,246
B. Labour ≈180 hours, Capital ≈55 units, Total cost ≈₦68,500
C. Labour ≈140 hours, Capital ≈70 units, Total cost ≈₦61,200
D. Labour ≈158 hours, Capital ≈63 units, Total cost ≈₦70,000
Correct Answer
A
Correct Option:
Labour ≈158 hours, Capital ≈63 units, Total cost ≈₦63,246

About This Question

This is Waec Model Questions Vol1 2020 Economics Question 25. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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