Waec Model Questions Vol1 2019 Economics Question 7

Practice objective / multiple choice question 7 from the 2019 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

A firm in a monopolistically competitive market faces the demand curve P = 120 - 2Q and has a marginal cost curve MC = 20 + Q. Fixed costs are ₦200. Determine the profit‑maximising output, the corresponding price, and the economic profit (or loss).

Answer Options

A. Output 22 units, price ₦75, profit ₦880
Correct Answer B. Output 20 units, price ₦80, profit ₦800
C. Output 20 units, price ₦90, profit ₦600
D. Output 18 units, price ₦85, profit ₦720
Correct Answer
B
Correct Option:
Output 20 units, price ₦80, profit ₦800

About This Question

This is Waec Model Questions Vol1 2019 Economics Question 7. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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