Gce Model Questions Vol1 2025 Economics Question 24

Practice objective / multiple choice question 24 from the 2025 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 24 GCE_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A firm's total cost function for producing \(Q\) units of output is \(TC = 0.02Q^{3} - 0.3Q^{2} + 20Q + 100\). The market price of the product is constant at £30 per unit. (a) Determine the profit‑maximising level of output (to two decimal places). (b) Calculate the profit earned at this output level (to two decimal places).

Answer Options

A. Profit‑maximising output ≈ 18.84 units; profit ≈ £50.00.
B. Profit‑maximising output ≈ 22.10 units; profit ≈ £78.35.
Correct Answer C. Profit‑maximising output ≈ 18.84 units; profit ≈ £61.14.
D. Profit‑maximising output ≈ 15.27 units; profit ≈ £45.60.
Correct Answer
C
Correct Option:
Profit‑maximising output ≈ 18.84 units; profit ≈ £61.14.

About This Question

This is Gce Model Questions Vol1 2025 Economics Question 24. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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