Waec Model Questions Vol1 2018 Economics Question 5

Practice essay / theory question 5 from the 2018 Waec Model Questions Vol1 Economics examination. This question covers Cost and Revenue .

Waec Model Questions Vol1 2018 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • essay

A small manufacturing firm produces a single product. Its total cost (TC) in Naira for producing Q units per month is given by TC = 0.5Q² + 20Q + 100. The market price per unit is determined by the linear demand function P = 200 – 0.5Q.

Question Parts

( a )

Derive the marginal cost (MC) function and the marginal revenue (MR) function for the firm.

( b )

Determine the output level that maximises the firm’s profit. Show the steps you use.

( c )

Calculate the profit at the output level found in part (b). State whether the firm should continue operating in the short run if its fixed cost is ₦100.

( d )

Assume the government imposes a specific tax of ₦10 per unit produced. Explain how the profit‑maximising output and the resulting profit will change.

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About This Question

This is Waec Model Questions Vol1 2018 Economics Question 5. It is one of the essay questions from the 2018 Waec Model Questions Vol1 Economics examination.

The question covers Cost and Revenue .

View More Waec Model Questions Vol1 2018 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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