Neco 2019 Economics Question 6

Practice essay / theory question 6 from the 2019 Neco Economics examination. This question covers Market Structures .

Neco 2019 Economics Essay / Theory

Topic: Market Structures

Question 6 NECO • 2019 • ECONOMICS • essay

In a small town, eight firms sell a homogeneous product. Each firm faces the individual demand curve P = 200 – 2Q_i, where Q_i is the quantity sold by the firm. All firms have a constant marginal cost (MC) of ₦40 per unit and there are no fixed costs.

( a )

Determine the profit‑maximising output (Q_i) and the corresponding price (P) for a typical firm in the short‑run equilibrium.

( b )

Calculate the economic profit earned by each firm at this output level.

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This is Neco 2019 Economics Question 6. It is one of the essay questions from the 2019 Neco Economics examination.

The question covers Market Structures .

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