Waec Model Questions Vol1 2021 Economics Question 21

Practice objective / multiple choice question 21 from the 2021 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 21 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

A bus company faces the demand equation Q = 5,000 - 200P, where Q is the number of passengers per month and P is the fare (in Naira). The total cost function is TC = 5,000 + 5Q + 0.005Q². Determine the fare that maximises the company's profit and compute the maximum profit.

Answer Options

A. Optimal fare = ₦25 per passenger; Maximum profit = ₦6,000
B. Optimal fare = ₦15 per passenger; Maximum profit = ₦4,000
C. Optimal fare = ₦30 per passenger; Maximum profit = ₦3,500
Correct Answer D. Optimal fare = ₦20 per passenger; Maximum profit = ₦5,000
Correct Answer
D
Correct Option:
Optimal fare = ₦20 per passenger; Maximum profit = ₦5,000

About This Question

This is Waec Model Questions Vol1 2021 Economics Question 21. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

View More Waec Model Questions Vol1 2021 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support