Neco 2023 Economics Question 4

Practice objective / multiple choice question 4 from the 2023 Neco Economics examination.

Neco 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 4 NECO • 2023 • ECONOMICS • objective

The market demand for a product is given by \( P = 200 - 2Q \), where \(P\) is price (naira) and \(Q\) is quantity demanded. The firm's total cost function is \( TC = 50{,}000 + 20Q + Q^{2} \). (a) Derive the profit function \(\pi(Q)\). (b) Determine the output level \(Q\) that maximizes profit. State the corresponding price and the maximum profit (or loss).

Answer Options

A. Q = 28 units; price = 144 naira; profit = -46,800 naira (loss)
B. Q = 35 units; price = 130 naira; profit = -48,500 naira (loss)
C. Q = 25 units; price = 150 naira; profit = -45,000 naira (loss)
Correct Answer D. Q = 30 units; price = 140 naira; profit = -47,300 naira (loss)
Correct Answer
D
Correct Option:
Q = 30 units; price = 140 naira; profit = -47,300 naira (loss)

About This Question

This is Neco 2023 Economics Question 4. It is one of the objective questions from the 2023 Neco Economics examination.

Difficulty level: Medium .

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