Post Utme Crawford University 2021 Economics Question 24

Practice objective / multiple choice question 24 from the 2021 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2021 Economics Objective / Multiple Choice
Question 24 POST_UTME_CRAWFORD_UNIVERSITY • 2021 • ECONOMICS • objective

The government imposes a tax of \( T = 0.05P \) on a firm's output, where ( P ) is the price of the output. If the firm's revenue function is ( R(x) = 20x - x^2 ), what is the new revenue function?

Answer Options

Correct Answer A. ( R(x) = 20x - x^2 - 0.05x^2 )
B. ( R(x) = 20x - x^2 + 0.05x^2 )
C. ( R(x) = 20x - x^2 - 0.05x )
D. ( R(x) = 20x - x^2 + 0.05x )
Correct Answer
A
Correct Option:
( R(x) = 20x - x^2 - 0.05x^2 )

About This Question

This is Post Utme Crawford University 2021 Economics Question 24. It is one of the objective questions from the 2021 Post Utme Crawford University Economics examination.

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