Neco 2017 Economics Question 6
Practice objective / multiple choice question 6 from the 2017 Neco Economics examination.
Given a firm's total cost function \(TC = 2000 + 5Q + 0.02Q^{2}\) where Q is output, and the market demand inverse function \(P = 120 - 0.1Q\): (a) Determine the output level that maximises profit and compute the maximum profit. (b) Find the lower break‑even output (the smallest Q where profit becomes non‑negative). (c) If fixed cost rises by 10%, by how many units does this lower break‑even output increase? Give your answer to one decimal place.
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About This Question
This is Neco 2017 Economics Question 6. It is one of the objective questions from the 2017 Neco Economics examination.
Difficulty level: Hard .
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