Neco 2022 Economics Question 28

Practice objective / multiple choice question 28 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 28 NECO • 2022 • ECONOMICS • objective

A monopolist faces the linear demand curve \\(P = 120 - 0.5Q\\) and has a constant marginal cost of \\(MC = 30\\). There are no fixed costs.\n\n(a) Find the profit‑maximising output and price.\n(b) Under perfect competition the market price would equal marginal cost. Determine the competitive equilibrium output and price.\n(c) Compute the dead‑weight loss arising from monopoly.

Answer Options

Correct Answer A. Q=90, P=75, DWL=2025
B. Q=100, P=70, DWL=2500
C. Q=90, P=70, DWL=1800
D. Q=80, P=80, DWL=1600
Correct Answer
A
Correct Option:
Q=90, P=75, DWL=2025

About This Question

This is Neco 2022 Economics Question 28. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Medium .

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