Neco 2018 Economics Question 49

Practice objective / multiple choice question 49 from the 2018 Neco Economics examination.

Neco 2018 Economics Objective / Multiple Choice Hard Difficulty
Question 49 NECO • 2018 • ECONOMICS • objective

A city bus company faces the following demand function for monthly passenger trips: \(Q = 5000 - 20P\), where \(P\) is the fare per passenger (in Naira) and \(Q\) is the number of passenger trips. The company has fixed monthly costs of ₦200,000 and a variable cost of ₦10 per passenger. Determine the fare that maximizes the company's monthly profit and compute the maximum profit.

Answer Options

A. Fare = ₦120, Maximum profit = ₦86,000
Correct Answer B. Fare = ₦130, Maximum profit = ₦88,000
C. Fare = ₦115, Maximum profit = ₦83,500
D. Fare = ₦140, Maximum profit = ₦86,000
Correct Answer
B
Correct Option:
Fare = ₦130, Maximum profit = ₦88,000

About This Question

This is Neco 2018 Economics Question 49. It is one of the objective questions from the 2018 Neco Economics examination.

Difficulty level: Hard .

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