Gce Model Questions Vol1 2025 Economics Question 9

Practice objective / multiple choice question 9 from the 2025 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 9 GCE_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A competitive firm has total cost given by \(TC = 200{,}000 + 30Q + 0.02Q^{2}\), where \(Q\) is output in units. (i) Find the output level at which marginal cost equals average total cost. (ii) If the market price is ₦80 per unit, calculate the firm's profit or loss at that output.

Answer Options

A. Output ≈ 2,800 units; Loss ≈ ₦210,000
B. Output ≈ 3,500 units; Loss ≈ ₦260,000
Correct Answer C. Output ≈ 3,162 units; Loss ≈ ₦241,900
D. Output ≈ 2,900 units; Loss ≈ ₦230,500
Correct Answer
C
Correct Option:
Output ≈ 3,162 units; Loss ≈ ₦241,900

About This Question

This is Gce Model Questions Vol1 2025 Economics Question 9. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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