Neco 2020 Economics Question 45

Practice objective / multiple choice question 45 from the 2020 Neco Economics examination.

Neco 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 45 NECO • 2020 • ECONOMICS • objective

The market demand for a product is given by \(P = 120 - 2Q\), where \(P\) is price in Naira and \(Q\) is quantity. A monopolist faces a constant marginal cost of \(MC = 20\). (a) Find the profit‑maximising output and price for the monopolist and compute its profit. (b) Under perfect competition the price equals marginal cost. Determine the competitive output and price. (c) Calculate the dead‑weight loss caused by monopoly.

Answer Options

A. Monopoly: Q=30, P=₦60, profit=₦1,200. Competition: Q=45, P=₦20. Dead‑weight loss=₦540
Correct Answer B. Monopoly: Q=25, P=₦70, profit=₦1,250. Competition: Q=50, P=₦20. Dead‑weight loss=₦625
C. Monopoly: Q=20, P=₦80, profit=₦1,600. Competition: Q=55, P=₦20. Dead‑weight loss=₦800
D. Monopoly: Q=25, P=₦75, profit=₦1,250. Competition: Q=50, P=₦25. Dead‑weight loss=₦625
Correct Answer
B
Correct Option:
Monopoly: Q=25, P=₦70, profit=₦1,250. Competition: Q=50, P=₦20. Dead‑weight loss=₦625

About This Question

This is Neco 2020 Economics Question 45. It is one of the objective questions from the 2020 Neco Economics examination.

Difficulty level: Medium .

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