Waec Model Questions Vol1 2018 Economics Question 11

Practice objective / multiple choice question 11 from the 2018 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2018 Economics Objective / Multiple Choice Hard Difficulty
Question 11 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

A bus company incurs a fixed monthly cost of ₦300,000 and a variable cost of ₦50 per passenger. The demand for seats is given by Q = 20,000 - 40P, where P is the fare (in Naira) and Q is the number of passengers per month. What fare should the company charge to maximise its monthly profit, and what is the maximum profit?

Answer Options

A. Fare = ₦250; Maximum profit = ₦1,500,000
B. Fare = ₦260; Maximum profit = ₦1,600,000
Correct Answer C. Fare = ₦275; Maximum profit = ₦1,725,000
D. Fare = ₦300; Maximum profit = ₦1,800,000
Correct Answer
C
Correct Option:
Fare = ₦275; Maximum profit = ₦1,725,000

About This Question

This is Waec Model Questions Vol1 2018 Economics Question 11. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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