Neco 2020 Economics Question 22

Practice objective / multiple choice question 22 from the 2020 Neco Economics examination.

Neco 2020 Economics Objective / Multiple Choice Hard Difficulty
Question 22 NECO • 2020 • ECONOMICS • objective

A firm's total cost function is \( TC = 0.5Q^{2} + 20Q + 200 \) and the market price of its product is \( \text{₦}30 \) per unit.\n(a) Find the output that minimizes average total cost (ATC).\n(b) Determine the profit‑maximising output for the firm.\n(c) Based on your results, should the firm continue operating in the short run? State your answer clearly.

Answer Options

A. Q_ATC_min = 15 units; Q_profit = 10 units; continue operating: Yes
Correct Answer B. Q_ATC_min = 20 units; Q_profit = 10 units; continue operating: Yes
C. Q_ATC_min = 20 units; Q_profit = 10 units; continue operating: No
D. Q_ATC_min = 20 units; Q_profit = 12 units; continue operating: Yes
Correct Answer
B
Correct Option:
Q_ATC_min = 20 units; Q_profit = 10 units; continue operating: Yes

About This Question

This is Neco 2020 Economics Question 22. It is one of the objective questions from the 2020 Neco Economics examination.

Difficulty level: Hard .

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