Waec Model Questions Vol1 2024 Economics Question 15

Practice objective / multiple choice question 15 from the 2024 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 15 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A company produces two products, A and B. Selling prices are ₦120 and ₦150 per unit respectively. Variable costs are ₦70 for A and ₦90 for B. Fixed costs amount to ₦100,000 per month. Each unit of A requires 2 labour‑hours and each unit of B requires 3 labour‑hours. The firm has at most 5,000 labour‑hours available each month. Determine the production plan (units of A and B) that yields the highest profit and compute that maximum profit.

Answer Options

A. 1,500 units of A, 500 units of B; maximum profit = ₦5,000
B. 1,000 units of A, 1,000 units of B; maximum profit = ₦10,000
Correct Answer C. 2,500 units of A, 0 units of B; maximum profit = ₦25,000
D. 2,000 units of A, 250 units of B; maximum profit = ₦15,000
Correct Answer
C
Correct Option:
2,500 units of A, 0 units of B; maximum profit = ₦25,000

About This Question

This is Waec Model Questions Vol1 2024 Economics Question 15. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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