Neco 2021 Economics Question 36

Practice objective / multiple choice question 36 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 36 NECO • 2021 • ECONOMICS • objective

An industry firm has total cost (in thousand naira) given by \(TC = 0.02Q^{3} - 0.3Q^{2} + 15Q + 200\), where \(Q\) is output in units. The market demand curve is \(P = 120 - 0.5Q\). Determine the output level that maximises profit and calculate the maximum profit (in thousand naira).

Answer Options

A. Output that maximises profit: \\(Q \\approx 40.2\\) units; Maximum profit: \\(\\approx 2,500.5\\) thousand naira.
B. Output that maximises profit: \\(Q \\approx 35.0\\) units; Maximum profit: \\(\\approx 2,300.0\\) thousand naira.
Correct Answer C. Output that maximises profit: \(Q \approx 38.6\) units; Maximum profit: \(\approx 2,404.8\) thousand naira.
D. Output that maximises profit: \\(Q \\approx 45.0\\) units; Maximum profit: \\(\\approx 2,100.0\\) thousand naira.
Correct Answer
C
Correct Option:
Output that maximises profit: \(Q \approx 38.6\) units; Maximum profit: \(\approx 2,404.8\) thousand naira.

About This Question

This is Neco 2021 Economics Question 36. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Hard .

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