Neco 2018 Economics Question 27

Practice objective / multiple choice question 27 from the 2018 Neco Economics examination.

Neco 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 27 NECO • 2018 • ECONOMICS • objective

Total cost (TC) of a firm is \( TC = 200 + 5Q + 0.2Q^{2} \) where \(Q\) is output. The market price per unit is \(\text{₦}20\).\n\n(a) Find the output level at which average total cost (ATC) equals marginal cost (MC).\n\n(b) Compute the profit the firm makes at that output.

Answer Options

Correct Answer A. Output \(Q = 10\sqrt{10}\) ≈ 31.62 units; profit ≈ ₦74.34.
B. Output \\(Q = 15\\sqrt{5}\\) ≈ 33.54 units; profit ≈ ₦65.00.
C. Output \\(Q = 5\\sqrt{20}\\) ≈ 22.36 units; profit ≈ ₦45.12.
D. Output \\(Q = 12\\sqrt{8}\\) ≈ 33.94 units; profit ≈ ₦80.00.
Correct Answer
A
Correct Option:
Output \(Q = 10\sqrt{10}\) ≈ 31.62 units; profit ≈ ₦74.34.

About This Question

This is Neco 2018 Economics Question 27. It is one of the objective questions from the 2018 Neco Economics examination.

Difficulty level: Medium .

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