Waec Model Questions Vol1 2017 Economics Question 12

Practice objective / multiple choice question 12 from the 2017 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 12 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

A small firm produces two products, A and B, using the same plant. The market demand equations are: \(P_A = 200 - 0.5Q_A\) and \(P_B = 150 - 0.4Q_B\), where \(P\) is price (Naira) and \(Q\) is quantity (units). The variable cost per unit is N10 for product A and N15 for product B, and the fixed daily cost is N10,000. The plant can produce at most 600 units in total (\(Q_A + Q_B \le 600\)). Determine the output levels of A and B that maximise total daily profit and state the maximum profit (rounded to the nearest Naira).

Answer Options

A. Q_A = 170 units, Q_B = 160 units (rounded); Maximum profit = N19,200
B. Q_A = 200 units, Q_B = 150 units (rounded); Maximum profit = N18,500
Correct Answer C. Q_A = 190 units, Q_B = 169 units (rounded); Maximum profit = N19,441
D. Q_A = 180 units, Q_B = 180 units (rounded); Maximum profit = N19,000
Correct Answer
C
Correct Option:
Q_A = 190 units, Q_B = 169 units (rounded); Maximum profit = N19,441

About This Question

This is Waec Model Questions Vol1 2017 Economics Question 12. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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