Neco 2018 Economics Question 11

Practice objective / multiple choice question 11 from the 2018 Neco Economics examination.

Neco 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 11 NECO • 2018 • ECONOMICS • objective

A firm's total cost function is \(TC = 0.1Q^{2} + 20Q + 500\) (where Q is output in units and costs are in Naira). The market demand curve is \(P = 120 - 0.5Q\). Determine the output level that maximizes profit and state the maximum profit. Give your answer as a fraction where appropriate.

Answer Options

A. Profit‑maximising output Q = 125 units (≈ 125 units) and maximum profit = 15000/3 Naira (≈ ₦5 000).
Correct Answer B. Profit‑maximising output Q = 250/3 units (≈ 83.33 units) and maximum profit = 11000/3 Naira (≈ ₦3 667).
C. Profit‑maximising output Q = 100 units (≈ 100 units) and maximum profit = 12000/3 Naira (≈ ₦4 000).
D. Profit‑maximising output Q = 200/3 units (≈ 66.67 units) and maximum profit = 9000/3 Naira (≈ ₦3 000).
Correct Answer
B
Correct Option:
Profit‑maximising output Q = 250/3 units (≈ 83.33 units) and maximum profit = 11000/3 Naira (≈ ₦3 667).

About This Question

This is Neco 2018 Economics Question 11. It is one of the objective questions from the 2018 Neco Economics examination.

Difficulty level: Medium .

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