Waec Model Questions Vol1 2023 Economics Question 13

Practice objective / multiple choice question 13 from the 2023 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2023 Economics Objective / Multiple Choice Hard Difficulty
Question 13 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

A farmer grows maize. The market price is ₦30,000 per tonne. The farmer's total cost (in thousands of naira) is $C=20+0.5Q+0.02Q^{2}$, where $Q$ is the quantity produced in tonnes. Assuming the farmer produces where price equals marginal cost, determine whether a 10% increase in price (to ₦33,000) that reduces quantity demanded by 8% will raise or lower the farmer's profit.

Answer Options

A. Profit remains the same
B. Profit decreases
C. Profit unchanged
Correct Answer D. Profit increases
Correct Answer
D
Correct Option:
Profit increases

About This Question

This is Waec Model Questions Vol1 2023 Economics Question 13. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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