Waec Model Questions Vol1 2017 Economics Question 21
Practice objective / multiple choice question 21 from the 2017 Waec Model Questions Vol1 Economics examination.
A transport company operates a bus with the following cost structure per month: fixed cost = ₦30,000; variable cost (excluding fuel) = ₦50 per kilometre; fuel price = ₦120 per litre; the bus runs 20 days a month covering 200 km each day. The bus's fuel efficiency is 5 km per litre. Ticket price per passenger is ₦500, but if the average number of passengers per day exceeds 40, a promotional discount of 10% is applied to all tickets (price becomes ₦450). The bus can carry at most 50 passengers. What is the smallest integer average number of passengers per day that will give the company a profit (i.e., total revenue greater than total cost)?
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About This Question
This is Waec Model Questions Vol1 2017 Economics Question 21. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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