Waec Model Questions Vol1 2022 Economics Question 5

Practice essay / theory question 5 from the 2022 Waec Model Questions Vol1 Economics examination. This question covers Cost and Revenue, Profit Maximisation .

Waec Model Questions Vol1 2022 Economics Essay / Theory
Topics: Cost and Revenue Profit Maximisation
Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • essay

A small manufacturing firm produces a single product. Its fixed cost is N500. The variable cost (VC) of producing Q units is given by VC = 5Q + 0.02Q². The firm sells each unit at a constant market price of N30 per unit.

Question Parts

( a )
Derive the expressions for marginal cost (MC) and marginal revenue (MR).
( b )
Using the expressions obtained in (a), determine the output level at which the firm’s profit is maximised. Show all steps of your reasoning.
( c )
Calculate the maximum profit the firm can earn at the output level found in (b).
( d )
The government introduces a specific tax of N20 per unit produced. Explain how this tax affects the profit‑maximising output and briefly state the new profit‑maximising output level.

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About This Question

This is Waec Model Questions Vol1 2022 Economics Question 5. It is one of the essay questions from the 2022 Waec Model Questions Vol1 Economics examination.

The question covers Cost and Revenue, Profit Maximisation .

View More Waec Model Questions Vol1 2022 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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