Gce Model Questions Vol1 2023 Economics Question 13

Practice objective / multiple choice question 13 from the 2023 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 13 GCE_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

A firm's total cost (TC) function in thousands of naira is \( TC = 0.05Q^{3} - 0.6Q^{2} + 30Q + 500 \), where \(Q\) is output in units.\n(a) Find the level of output that minimises average total cost (ATC).\n(b) Calculate this minimum ATC value.\n(c) If the market price is \(P = 40\) per unit, determine the firm's profit (or loss) at the output found in part (a).

Answer Options

A. Output ≈ 20.10 units; minimum ATC ≈ ₦64,300 per unit; loss ≈ ₦460,200
Correct Answer B. Output ≈ 19.35 units; minimum ATC ≈ ₦62,950 per unit; loss ≈ ₦444,120
C. Output ≈ 18.20 units; minimum ATC ≈ ₦60,800 per unit; loss ≈ ₦410,500
D. Output ≈ 19.35 units; minimum ATC ≈ ₦65,000 per unit; loss ≈ ₦450,000
Correct Answer
B
Correct Option:
Output ≈ 19.35 units; minimum ATC ≈ ₦62,950 per unit; loss ≈ ₦444,120

About This Question

This is Gce Model Questions Vol1 2023 Economics Question 13. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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