Gce Model Questions Vol1 2024 Economics Question 14

Practice objective / multiple choice question 14 from the 2024 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 14 GCE_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A firm's total cost function is \( C = 0.5Q^{2} + 20Q + 1000 \) and its total revenue function is \( R = 120Q - 0.5Q^{2} \), where \(Q\) is output. Determine the output level that maximises profit and calculate the maximum profit.

Answer Options

Correct Answer A. Output that maximises profit = 50 units; maximum profit = £1500
B. Output that maximises profit = 60 units; maximum profit = £1800
C. Output that maximises profit = 40 units; maximum profit = £1200
D. Output that maximises profit = 45 units; maximum profit = £1350
Correct Answer
A
Correct Option:
Output that maximises profit = 50 units; maximum profit = £1500

About This Question

This is Gce Model Questions Vol1 2024 Economics Question 14. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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