Waec Model Questions Vol1 2019 Economics Question 19
Practice objective / multiple choice question 19 from the 2019 Waec Model Questions Vol1 Economics examination.
A manufacturing firm has total cost (in million Naira) given by TC = 0.5Q² + 20Q + 500, where Q is output in thousand units. The market price per thousand units is 80 million Naira. The government imposes a specific tax of 10 million Naira per thousand units. (a) What is the minimum output (in thousand units, rounded to the nearest whole thousand) the firm must produce to break even after the tax? (b) At that output, does the firm experience economies of scale (i.e., is average cost decreasing)? Answer with the output and either "Yes" or "No".
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About This Question
This is Waec Model Questions Vol1 2019 Economics Question 19. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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