Neco 2020 Economics Question 32

Practice objective / multiple choice question 32 from the 2020 Neco Economics examination.

Neco 2020 Economics Objective / Multiple Choice Hard Difficulty
Question 32 NECO • 2020 • ECONOMICS • objective

An industry firm faces a total cost function \(TC = 5000 + 20Q + 0.05Q^{2}\) where Q is the quantity of output (units). The market demand for its product is given by the inverse demand \(P = 120 - 0.1Q\). Determine the output level that maximises profit and state the maximum profit (in Naira) rounded to the nearest Naira.

Answer Options

A. Q \approx 300 units; maximum profit = ₦10,500
B. Q \approx 250 units; maximum profit = ₦8,200
C. Q \approx 350 units; maximum profit = ₦12,800
Correct Answer D. Q \approx 333 units; maximum profit = ₦11,667
Correct Answer
D
Correct Option:
Q \approx 333 units; maximum profit = ₦11,667

About This Question

This is Neco 2020 Economics Question 32. It is one of the objective questions from the 2020 Neco Economics examination.

Difficulty level: Hard .

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