Neco 2022 Economics Question 22

Practice objective / multiple choice question 22 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Hard Difficulty
Question 22 NECO • 2022 • ECONOMICS • objective

An industrial firm produces two products, A and B. Fixed cost = \(\text{₦}500,000\). Variable cost per unit: \(VC_A = 200\) Naira, \(VC_B = 150\) Naira. Selling price per unit: \(P_A = 400\) Naira, \(P_B = 300\) Naira. An environmental tax of \(\text{₦}20\) per unit is imposed on product A only. The firm has a total production capacity of 4,000 units and must allocate at least 20 % of its output to product B. Determine the number of units of A and B that the firm should produce to maximise profit, and state the maximum profit.

Answer Options

A. A = 2800 units, B = 1200 units; Profit = 184000
B. A = 3200 units, B = 800 units; Profit = 200000
C. A = 3000 units, B = 1000 units; Profit = 190000
Correct Answer D. A = 3200 units, B = 800 units; Profit = 196000
Correct Answer
D
Correct Option:
A = 3200 units, B = 800 units; Profit = 196000

About This Question

This is Neco 2022 Economics Question 22. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Hard .

View More Neco 2022 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