Neco 2022 Economics Question 5

Practice essay / theory question 5 from the 2022 Neco Economics examination. This question covers Cost and Revenue .

Neco 2022 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 NECO • 2022 • ECONOMICS • essay

A small manufacturing firm produces two products, X and Y, using the same plant. The total cost (TC) of producing q units of output (where q = q_X + q_Y) is given by TC = 200 + 5q + 0.02q^2 (in Naira). The price per unit of product X is ₦30 and per unit of product Y is ₦45. The firm plans to produce a total of 200 units, with the ratio of X to Y units being 3:2.

Question Parts

( a )

Determine the number of units of X and Y to be produced.

( b )

Compute total revenue and total cost for the planned production and state whether the firm makes a profit or a loss.

( c )

If the firm wants to achieve a profit of at least ₦5,000 while keeping the same 3:2 production ratio, what is the minimum total output q required? Show all steps.

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About This Question

This is Neco 2022 Economics Question 5. It is one of the essay questions from the 2022 Neco Economics examination.

The question covers Cost and Revenue .

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