Neco 2023 Economics Question 22

Practice objective / multiple choice question 22 from the 2023 Neco Economics examination.

Neco 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 22 NECO • 2023 • ECONOMICS • objective

Consider a firm operating in a monopolistically competitive market with inverse demand \(P = 120 - 0.5Q\) and total cost function \(TC = 20Q + 0.02Q^{2} + 5{,}000\). Find the output level that maximises profit, the corresponding price, and state whether the firm makes an economic profit or a loss (give the amount, rounded to the nearest naira).

Answer Options

Correct Answer A. Q ≈ 96 units, P ≈ ₦71.9, economic loss ≈ ₦192
B. Q ≈ 80 units, P ≈ ₦80.0, economic loss ≈ ₦300
C. Q ≈ 90 units, P ≈ ₦75.0, economic profit ≈ ₦200
D. Q ≈ 100 units, P ≈ ₦70.0, economic loss ≈ ₦150
Correct Answer
A
Correct Option:
Q ≈ 96 units, P ≈ ₦71.9, economic loss ≈ ₦192

About This Question

This is Neco 2023 Economics Question 22. It is one of the objective questions from the 2023 Neco Economics examination.

Difficulty level: Medium .

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