Neco 2021 Economics Question 12

Practice objective / multiple choice question 12 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 12 NECO • 2021 • ECONOMICS • objective

A monopolist faces the linear demand curve \(P = 120 - 0.5Q\) and has a constant marginal cost of \(MC = 30\). Determine (i) the profit‑maximising output and price, (ii) the monopoly profit, (iii) the competitive equilibrium output and price, and (iv) the dead‑weight loss caused by monopoly power.

Answer Options

A. Profit‑max output = 120 units, Price = 60 Naira, Monopoly profit = 3,600 Naira, Competitive output = 180 units, Competitive price = 30 Naira, Dead‑weight loss = 900 Naira
B. Profit‑max output = 90 units, Price = 75 Naira, Monopoly profit = 4,050 Naira, Competitive output = 150 units, Competitive price = 45 Naira, Dead‑weight loss = 1,800 Naira
C. Profit‑max output = 90 units, Price = 75 Naira, Monopoly profit = 6,750 Naira, Competitive output = 180 units, Competitive price = 30 Naira, Dead‑weight loss = 1,800 Naira
Correct Answer D. Profit‑max output = 90 units, Price = 75 Naira, Monopoly profit = 4,050 Naira, Competitive output = 180 units, Competitive price = 30 Naira, Dead‑weight loss = 2,025 Naira
Correct Answer
D
Correct Option:
Profit‑max output = 90 units, Price = 75 Naira, Monopoly profit = 4,050 Naira, Competitive output = 180 units, Competitive price = 30 Naira, Dead‑weight loss = 2,025 Naira

About This Question

This is Neco 2021 Economics Question 12. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Medium .

View More Neco 2021 Economics Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support