Neco 2019 Economics Question 39

Practice objective / multiple choice question 39 from the 2019 Neco Economics examination.

Neco 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 39 NECO • 2019 • ECONOMICS • objective

A firm's total cost function is \(TC = 2000 + 15Q + 0.2Q^{2}\). The market price per unit is fixed at \(\text{₦}50\).\n\nDetermine the output level where average total cost equals marginal cost, and compute the profit (or loss) at that output.

Answer Options

A. Output = 120 units; Profit = -₦300 (loss)
B. Output = 80 units; Profit = -₦800 (loss)
Correct Answer C. Output = 100 units; Profit = -₦500 (loss)
D. Output = 100 units; Profit = ₦200 (profit)
Correct Answer
C
Correct Option:
Output = 100 units; Profit = -₦500 (loss)

About This Question

This is Neco 2019 Economics Question 39. It is one of the objective questions from the 2019 Neco Economics examination.

Difficulty level: Medium .

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