Gce Model Questions Vol1 2019 Economics Question 13

Practice objective / multiple choice question 13 from the 2019 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 13 GCE_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

A perfectly competitive firm faces a total cost function \( TC = 100 + 5Q + 0.5Q^{2} \), where \(Q\) is output in units and costs are in dollars. The market price is constant at \( P = 20 \) dollars per unit. Determine the profit‑maximising level of output and the profit earned at that output.

Answer Options

Correct Answer A. Output = 15 units; Profit = $12.5
B. Output = 10 units; Profit = $-25
C. Output = 12 units; Profit = $8.0
D. Output = 20 units; Profit = $5
Correct Answer
A
Correct Option:
Output = 15 units; Profit = $12.5

About This Question

This is Gce Model Questions Vol1 2019 Economics Question 13. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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