Neco 2019 Economics Question 44
Practice objective / multiple choice question 44 from the 2019 Neco Economics examination.
A textile firm has fixed costs of ₦2,000,000. The variable cost per shirt is ₦500 and the current selling price is ₦800. At this price the firm can sell 8,000 shirts. The firm expects to raise the price to ₦900 and, because of overtime, the variable cost will increase by 10\%. It can then sell up to 10,000 shirts at the new price. Should the firm adopt the new price and cost structure? Compute the profit under each scenario and indicate the better option.
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About This Question
This is Neco 2019 Economics Question 44. It is one of the objective questions from the 2019 Neco Economics examination.
Difficulty level: Hard .
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