Gce Model Questions Vol1 2020 Economics Question 8
Practice objective / multiple choice question 8 from the 2020 Gce Model Questions Vol1 Economics examination.
A firm's total cost function (in £ thousand) for output \(Q\) (in thousand units) is \( TC = 0.02Q^{3} - 0.3Q^{2} + 15Q + 200 \). The market price of the product is constant at £30 per unit. The government imposes a per‑unit environmental tax of £2. Find the output level that maximises profit after the tax and compute the maximum profit (in £ thousand). Give the output to two decimal places and profit to two decimal places.
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About This Question
This is Gce Model Questions Vol1 2020 Economics Question 8. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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