Neco 2024 Economics Question 5

Practice essay / theory question 5 from the 2024 Neco Economics examination. This question covers Cost and Revenue .

Neco 2024 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 NECO • 2024 • ECONOMICS • essay

A manufacturing firm produces a single type of widget. The fixed cost of production is ₦200,000 per month. The total cost of producing 1,000 widgets is ₦500,000 and the total cost of producing 1,500 widgets is ₦650,000. The firm sells each widget for ₦800.

( a )

Determine the variable cost per widget assuming variable cost is linear in output.

( b )

Write the total cost (TC) function in terms of output Q.

( c )

Calculate the average cost (AC) and marginal cost (MC) when output is 1,200 widgets.

( d )

Find the break‑even output level at which the selling price equals average cost.

( e )

Compute the profit (or loss) when the firm produces and sells 1,200 widgets.

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This is Neco 2024 Economics Question 5. It is one of the essay questions from the 2024 Neco Economics examination.

The question covers Cost and Revenue .

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