Neco 2018 Economics Question 18

Practice objective / multiple choice question 18 from the 2018 Neco Economics examination.

Neco 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 18 NECO • 2018 • ECONOMICS • objective

A monopolist can price‑discriminate between two separate markets. In market A the demand is \(P = 120 - 2Q_{A}\). In market B the demand is \(P = 100 - Q_{B}\). The firm's marginal cost is constant at \(MC = 20\).\n(a) Determine the profit‑maximising output and price in each market.\n(b) Compute the firm's total profit from both markets combined.

Answer Options

Correct Answer A. Q_A=25, P_A=70; Q_B=40, P_B=60; Total profit = 2850
B. Q_A=25, P_A=65; Q_B=40, P_B=55; Total profit = 2525
C. Q_A=20, P_A=80; Q_B=30, P_B=70; Total profit = 2700
D. Q_A=30, P_A=70; Q_B=35, P_B=60; Total profit = 2900
Correct Answer
A
Correct Option:
Q_A=25, P_A=70; Q_B=40, P_B=60; Total profit = 2850

About This Question

This is Neco 2018 Economics Question 18. It is one of the objective questions from the 2018 Neco Economics examination.

Difficulty level: Medium .

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