Gce Model Questions Vol1 2024 Economics Question 33
Practice objective / multiple choice question 33 from the 2024 Gce Model Questions Vol1 Economics examination.
A perfectly competitive firm in the textile industry has fixed costs of £120 million. Its variable cost function (in £ thousands) is \(VC(Q) = 0.5Q + 0.02Q^{2}\), where \(Q\) is output measured in thousands of units. The government imposes a specific tax of £2 per unit. The market price is £15 per unit. Determine the profit‑maximising output (in thousands of units) and the resulting profit (in £ millions).
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About This Question
This is Gce Model Questions Vol1 2024 Economics Question 33. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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