Waec Model Questions Vol1 2025 Economics Question 15

Practice objective / multiple choice question 15 from the 2025 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2025 Economics Objective / Multiple Choice Hard Difficulty
Question 15 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A textile firm produces shirts (Q_s) and trousers (Q_t). The total cost function (in thousands of Naira) is C = 50 + 2Q_s + 3Q_t + 0.01Q_s^2 + 0.02Q_t^2 + 0.005Q_sQ_t, where Q_s and Q_t are quantities (in thousands) of shirts and trousers respectively. The inverse demand functions are P_s = 30 - 0.5Q_s for shirts and P_t = 45 - 0.4Q_t for trousers (prices in thousands of Naira per thousand units). Determine the production levels (Q_s, Q_t) that maximise total profit and compute the maximum profit (in thousands of Naira). Treat quantities as continuous variables.

Answer Options

Correct Answer A. Q_s ≈ 27.2 thousand shirts, Q_t ≈ 49.8 thousand trousers; maximum profit ≈ ₦1,378,000
B. Q_s ≈ 30.0 thousand shirts, Q_t ≈ 45.0 thousand trousers; maximum profit ≈ ₦1,250,000
C. Q_s ≈ 28.8 thousand shirts, Q_t ≈ 48.1 thousand trousers; maximum profit ≈ ₦1,300,000
D. Q_s ≈ 25.5 thousand shirts, Q_t ≈ 52.3 thousand trousers; maximum profit ≈ ₦1,420,000
Correct Answer
A
Correct Option:
Q_s ≈ 27.2 thousand shirts, Q_t ≈ 49.8 thousand trousers; maximum profit ≈ ₦1,378,000

About This Question

This is Waec Model Questions Vol1 2025 Economics Question 15. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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