Waec Model Questions Vol1 2024 Economics Question 13

Practice objective / multiple choice question 13 from the 2024 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 13 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A transport company runs identical trucks. Each truck incurs a fixed monthly cost of ₦150,000 and a variable cost of ₦30 per kilometre travelled. The company can charge a freight rate R (₦ per ton·km). Each truck can carry 20 tons per trip and the average trip distance is 200 km. Market demand for freight is represented by the linear function T = 120 - 2R, where T is the number of trips a truck makes per month. Determine the freight rate R that maximises the monthly profit per truck and compute that maximum profit.

Answer Options

A. R = 31.50 ₦/ton·km; maximum profit = ₦6,500,000 per month
B. R = 32.00 ₦/ton·km; maximum profit = ₦7,200,000 per month
C. R = 28.50 ₦/ton·km; maximum profit = ₦5,800,000 per month
Correct Answer D. R = 30.75 ₦/ton·km; maximum profit = ₦6,694,500 per month
Correct Answer
D
Correct Option:
R = 30.75 ₦/ton·km; maximum profit = ₦6,694,500 per month

About This Question

This is Waec Model Questions Vol1 2024 Economics Question 13. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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