Neco 2019 Economics Question 24

Practice objective / multiple choice question 24 from the 2019 Neco Economics examination.

Neco 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 24 NECO • 2019 • ECONOMICS • objective

In a monopolistically competitive market the firm's demand curve is \( P = 120 - 4Q \) and its total cost function is \( TC = 20Q + 0.5Q^{2} \). Determine the output level that maximises profit and compute the maximum profit (to two decimal places).

Answer Options

Correct Answer A. Output = 100/9 units (≈11.1), Profit = 555.56
B. Output = 90\/9 units (≈10.0), Profit = 500.00
C. Output = 100\/9 units (≈11.1), Profit = 600.00
D. Output = 110\/9 units (≈12.2), Profit = 600.00
Correct Answer
A
Correct Option:
Output = 100/9 units (≈11.1), Profit = 555.56

About This Question

This is Neco 2019 Economics Question 24. It is one of the objective questions from the 2019 Neco Economics examination.

Difficulty level: Medium .

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