Post Utme Joseph Ayo Babalola University 2025 Economics Question 16

Practice objective / multiple choice question 16 from the 2025 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2025 Economics Objective / Multiple Choice
Question 16 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2025 • ECONOMICS • objective

Suppose a firm's marginal revenue (MR) and marginal \cost (MC) curves intersect at a point where MR = 120 and MC = 100. If the firm's demand curve is given by Q = 100 - 2P, and the firm's total \cost (TC) function is TC = 200 + 20Q + 0.5Q^2, what is the firm's optimal price (P) and quantity (Q) at the point of equilibrium?

Answer Options

Correct Answer A. \( P = 40, Q = 30 \)
B. \( P = 50, Q = 25 \)
C. \( P = 60, Q = 20 \)
D. \( P = 70, Q = 15 \)
Correct Answer
A
Correct Option:
\( P = 40, Q = 30 \)

About This Question

This is Post Utme Joseph Ayo Babalola University 2025 Economics Question 16. It is one of the objective questions from the 2025 Post Utme Joseph Ayo Babalola University Economics examination.

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