Waec Model Questions Vol1 2018 Economics Question 3

Practice objective / multiple choice question 3 from the 2018 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2018 Economics Objective / Multiple Choice Hard Difficulty
Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

A transport company plans to start a new bus service between City A and City B. Fixed monthly cost is ₦2,000,000 and the variable cost per passenger is ₦500. The ticket price is set at ₦P. Monthly passenger demand is given by Q = 10,000 - 3P (where Q is the number of passengers and P is the ticket price in ₦). The company wants a monthly profit of at least ₦500,000. Determine the minimum ticket price that will achieve this profit target and the corresponding expected number of passengers.

Answer Options

A. Minimum ticket price ≈ ₦900; expected passengers ≈ 7,300 per month
Correct Answer B. Minimum ticket price ≈ ₦834; expected passengers ≈ 7,500 per month
C. Minimum ticket price ≈ ₦750; expected passengers ≈ 7,750 per month
D. Minimum ticket price ≈ ₦800; expected passengers ≈ 7,600 per month
Correct Answer
B
Correct Option:
Minimum ticket price ≈ ₦834; expected passengers ≈ 7,500 per month

About This Question

This is Waec Model Questions Vol1 2018 Economics Question 3. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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