Waec Model Questions Vol1 2024 Economics Question 9

Practice objective / multiple choice question 9 from the 2024 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 9 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A monopoly faces the demand curve P = 100 - 2Q and has total cost TC = 20Q + 0.5Q².\n(a) Determine the monopoly's profit‑maximising output, price and profit.\n(b) Assuming perfect competition, find the competitive equilibrium output and price.\n(c) Calculate the dead‑weight loss caused by the monopoly.

Answer Options

A. Monopoly output 18, price 64, profit 720; Competitive output 24.00, price 48.00; DWL 150.00
B. Monopoly output 14, price 72, profit 560; Competitive output 28.00, price 44.00; DWL 180.00
C. Monopoly output 16, price 70, profit 600; Competitive output 30.00, price 40.00; DWL 200.00
Correct Answer D. Monopoly output 16, price 68, profit 640; Competitive output 26.67, price 46.67; DWL 170.67
Correct Answer
D
Correct Option:
Monopoly output 16, price 68, profit 640; Competitive output 26.67, price 46.67; DWL 170.67

About This Question

This is Waec Model Questions Vol1 2024 Economics Question 9. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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