Neco 2021 Economics Question 48

Practice objective / multiple choice question 48 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 48 NECO • 2021 • ECONOMICS • objective

A firm's total cost (in thousand Naira) is given by \(TC = 0.02Q^{3} - 0.3Q^{2} + 15Q + 200\), where \(Q\) is output quantity. The market demand curve is \(P = 120 - 0.5Q\) (price per unit in Naira). Assuming the firm can set output where marginal revenue equals marginal cost, find the output level that maximizes profit and the corresponding maximum profit (in Naira, rounded to the nearest Naira).

Answer Options

A. Quantity = 35 units; Maximum profit = 2,100 Naira
B. Quantity = 42 units; Maximum profit = 2,600 Naira
Correct Answer C. Quantity = 39 units; Maximum profit = 2,404 Naira
D. Quantity = 39 units; Maximum profit = 2,500 Naira
Correct Answer
C
Correct Option:
Quantity = 39 units; Maximum profit = 2,404 Naira

About This Question

This is Neco 2021 Economics Question 48. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Medium .

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