Neco 2020 Economics Question 41

Practice objective / multiple choice question 41 from the 2020 Neco Economics examination.

Neco 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 41 NECO • 2020 • ECONOMICS • objective

A firm's total cost function is \(TC = 5Q + 0.5Q^{2}\) and total revenue function is \(TR = 12Q - 0.1Q^{2}\), where \(Q\) is output in units. Determine the output level that maximizes profit and calculate the maximum profit.

Answer Options

Correct Answer A. Output = 35/6 units (≈5.83 units); Maximum profit = 245/12 Naira (≈20.42 Naira)
B. Output = 70/11 units (≈6.36 units); Maximum profit = 2450/121 Naira (≈20.25 Naira)
C. Output = 35/6 units (≈5.83 units); Maximum profit = 1715/72 Naira (≈23.82 Naira)
D. Output = 35/3 units (≈11.67 units); Maximum profit = 0 Naira (≈0 Naira)
Correct Answer
A
Correct Option:
Output = 35/6 units (≈5.83 units); Maximum profit = 245/12 Naira (≈20.42 Naira)

About This Question

This is Neco 2020 Economics Question 41. It is one of the objective questions from the 2020 Neco Economics examination.

Difficulty level: Medium .

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