Gce Model Questions Vol1 2021 Economics Question 3

Practice objective / multiple choice question 3 from the 2021 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 3 GCE_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

A perfectly competitive firm has total cost \(TC = Q^{3} - 6Q^{2} + 15Q + 20\) (naira). Fixed cost is the constant term.\n\n(a) Find the shut‑down price.\n(b) If the market price is ₦8, determine the output the firm will produce and the resulting profit (or loss).

Answer Options

A. Shut‑down price = 7; Output ≈ 4.10 units; Loss ≈ 15.2
B. Shut‑down price = 5; Output ≈ 2.85 units; Loss ≈ 12.4
Correct Answer C. Shut‑down price = 6; Output ≈ 3.29 units; Loss ≈ 13.7
D. Shut‑down price = 6; Output ≈ 3.00 units; Loss ≈ 10.5
Correct Answer
C
Correct Option:
Shut‑down price = 6; Output ≈ 3.29 units; Loss ≈ 13.7

About This Question

This is Gce Model Questions Vol1 2021 Economics Question 3. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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