Waec Model Questions Vol1 2019 Economics Question 5

Practice essay / theory question 5 from the 2019 Waec Model Questions Vol1 Economics examination. This question covers Cost and Revenue .

Waec Model Questions Vol1 2019 Economics Essay / Theory
Topic: Cost and Revenue
Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • essay

A manufacturing firm incurs costs that can be represented by the total cost function TC = 200 + 5Q, where Q is the quantity of output produced (units). The prevailing market price for the product is ₦12 per unit.

Question Parts

( a )
Define fixed cost and variable cost. Illustrate each with a concrete example that could be relevant to the firm above.
( b )
Using the given cost function, calculate (i) the average total cost (ATC) at Q = 1,000 units, and (ii) the marginal cost (MC) at that output level. Show the steps of your calculation.
( c )
Based on the market price of ₦12 per unit, determine the firm’s profit or loss at the output level of 1,000 units. Comment on the short‑run production decision of the firm.

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About This Question

This is Waec Model Questions Vol1 2019 Economics Question 5. It is one of the essay questions from the 2019 Waec Model Questions Vol1 Economics examination.

The question covers Cost and Revenue .

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