Waec Model Questions Vol1 2017 Economics Question 19

Practice objective / multiple choice question 19 from the 2017 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 19 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

A firm faces the total cost function \(TC = 500 + 20Q + 0.5Q^{2}\) where Q is output in units. The market price of the product is ₦40 per unit. Determine the output level that maximizes profit and compute the profit (or loss) at that output. Should the firm produce in the short run? State your answer.

Answer Options

Correct Answer A. Produce 20 units; loss of ₦300
B. Produce 20 units; profit of ₦100
C. Produce 15 units; loss of ₦200
D. Produce 25 units; loss of ₦400
Correct Answer
A
Correct Option:
Produce 20 units; loss of ₦300

About This Question

This is Waec Model Questions Vol1 2017 Economics Question 19. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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