Waec Model Questions Vol1 2017 Economics Question 5

Practice essay / theory question 5 from the 2017 Waec Model Questions Vol1 Economics examination. This question covers Cost and Revenue .

Waec Model Questions Vol1 2017 Economics Essay / Theory
Topic: Cost and Revenue
Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • essay

A small manufacturing firm produces a single product. The firm recorded the following total costs at two different output levels: - When output was 200 units, total cost was ₦300,000. - When output was 500 units, total cost was ₦420,000. The selling price of the product is fixed at ₦800 per unit. Using the information above, answer the following questions:

Question Parts

( a )
Determine the firm's fixed cost and variable cost per unit.
( b )
Calculate the break‑even output (the quantity at which total revenue equals total cost).
( c )
If the variable cost per unit rises by 20 %, determine the new break‑even output.
( d )
Assuming the firm produces 800 units, compute its profit (or loss) and comment on the implication for the firm’s short‑run decision.

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About This Question

This is Waec Model Questions Vol1 2017 Economics Question 5. It is one of the essay questions from the 2017 Waec Model Questions Vol1 Economics examination.

The question covers Cost and Revenue .

View More Waec Model Questions Vol1 2017 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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