Gce Model Questions Vol1 2017 Economics Question 49

Practice objective / multiple choice question 49 from the 2017 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 49 GCE_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

A firm's total cost function is \(TC = 5Q^{2} + 20Q + 100\) (thousand Naira). The market price of its product is \(\text{₦}80\) per unit.\n\n(a) Find the output level at which average total cost (ATC) equals marginal cost (MC).\n(b) At that output, calculate the firm's profit (or loss).\n(c) If the market price rises to \(\text{₦}90\) per unit, what is the new profit at the same output level?

Answer Options

A. Q ≈ 4.00 units; profit at ₦80 = ₦70.00 k; profit at ₦90 = ₦115.00 k
Correct Answer B. Q ≈ 4.47 units; profit at ₦80 = ₦68.33 k; profit at ₦90 = ₦113.05 k
C. Q ≈ 5.00 units; profit at ₦80 = ₦60.00 k; profit at ₦90 = ₦105.00 k
D. Q ≈ 4.47 units; profit at ₦80 = ₦68.33 k; profit at ₦90 = ₦120.00 k
Correct Answer
B
Correct Option:
Q ≈ 4.47 units; profit at ₦80 = ₦68.33 k; profit at ₦90 = ₦113.05 k

About This Question

This is Gce Model Questions Vol1 2017 Economics Question 49. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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