Waec Model Questions Vol1 2018 Economics Question 20

Practice objective / multiple choice question 20 from the 2018 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 20 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

A firm's total cost (TC) function for producing Q units of a product is TC = 5,000 + 20Q + 0.05Q² (in Naira). The market price is given by the inverse demand function P = 200 - 0.1Q. Determine (a) the output level that maximizes profit, (b) the maximum profit, and (c) the break‑even output(s).

Answer Options

A. Profit‑maximising output = 600 units; Maximum profit = ₦45,500; Break‑even outputs ≈ 30 units and 1,180 units
B. Profit‑maximising output = 650 units; Maximum profit = ₦52,000; Break‑even outputs ≈ 25 units and 1,200 units
Correct Answer C. Profit‑maximising output = 600 units; Maximum profit = ₦49,000; Break‑even outputs ≈ 29 units and 1,172 units
D. Profit‑maximising output = 500 units; Maximum profit = ₦45,000; Break‑even outputs ≈ 35 units and 1,150 units
Correct Answer
C
Correct Option:
Profit‑maximising output = 600 units; Maximum profit = ₦49,000; Break‑even outputs ≈ 29 units and 1,172 units

About This Question

This is Waec Model Questions Vol1 2018 Economics Question 20. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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