Waec Model Questions Vol1 2020 Economics Question 5

Practice essay / theory question 5 from the 2020 Waec Model Questions Vol1 Economics examination. This question covers Cost and Revenue .

Waec Model Questions Vol1 2020 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • essay

A small manufacturing firm produces wooden chairs. The fixed cost per month is ₦150,000. The variable cost per unit can be expressed as VC = 20Q + 0.05Q² where Q is the number of chairs produced in a month. The firm sells each chair at a price that depends on the quantity sold: P = 500 – 0.1Q.

Question Parts

( a )

Write the expressions for total cost (TC) and total revenue (TR) as functions of Q.

( b )

Determine the break‑even output(s) where total revenue equals total cost. State the corresponding revenue at each break‑even output.

( c )

If the firm expects to sell 2,000 chairs in a month, compute the profit (or loss) it will make.

( d )

Suggest two practical ways the firm could improve its profitability and briefly explain how each would affect profit.

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About This Question

This is Waec Model Questions Vol1 2020 Economics Question 5. It is one of the essay questions from the 2020 Waec Model Questions Vol1 Economics examination.

The question covers Cost and Revenue .

View More Waec Model Questions Vol1 2020 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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