Neco 2019 Economics Question 5

Practice essay / theory question 5 from the 2019 Neco Economics examination. This question covers Cost and Revenue .

Neco 2019 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 NECO • 2019 • ECONOMICS • essay

A small manufacturing firm provides the following data on its total cost (TC) of production at various output levels (Q). All costs are in Nigerian Naira (₦).

Question Parts

( a )

Calculate the average total cost (ATC) when output is 100 units and when output is 200 units.

( b )

Estimate the marginal cost (MC) of producing the 101st to the 150th unit using the data provided.

( c )

Using the table, identify the range of output over which the firm enjoys economies of scale (i.e., where ATC is falling). State the reasoning clearly.

( d )

If the market price is ₦120 per unit, should the firm continue production at the 150‑unit level in the short run? Justify your answer by comparing price with average variable cost (AVC).

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About This Question

This is Neco 2019 Economics Question 5. It is one of the essay questions from the 2019 Neco Economics examination.

The question covers Cost and Revenue .

View More Neco 2019 Economics Questions More Neco Practice Questions Back to Questions

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