Gce Model Questions Vol1 2018 Economics Question 43
Practice objective / multiple choice question 43 from the 2018 Gce Model Questions Vol1 Economics examination.
A firm faces the demand curve \( P = 120 - 2Q \). Its total cost function (excluding tax) is \( TC = 20Q + 0.5Q^{2} + F \), where \(F\) is fixed cost. The government imposes a specific tax of ₦10 per unit produced. Assuming the firm produces the profit‑maximising output after the tax, what is the maximum fixed cost \(F\) that still allows the firm to earn a profit of at least ₦200?
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About This Question
This is Gce Model Questions Vol1 2018 Economics Question 43. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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