Neco 2024 Economics Question 22

Practice objective / multiple choice question 22 from the 2024 Neco Economics examination.

Neco 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 22 NECO • 2024 • ECONOMICS • objective

A poultry farm has fixed costs of ₦500,000 per year and a variable cost of ₦2,500 per bird. The market price per bird depends on total output Q according to the demand function \( P = 20,000 - 0.5 Q \) (Naira). The government imposes a 10% levy on total revenue. Determine the output level that maximises profit after the levy and compute the maximum profit.

Answer Options

A. Output ≈ 15,000 birds, Maximum profit ≈ ₦120,000,000
Correct Answer B. Output ≈ 17,222 birds, Maximum profit ≈ ₦132,972,219
C. Output ≈ 20,000 birds, Maximum profit ≈ ₦100,250,000
D. Output ≈ 18,500 birds, Maximum profit ≈ ₦140,500,000
Correct Answer
B
Correct Option:
Output ≈ 17,222 birds, Maximum profit ≈ ₦132,972,219

About This Question

This is Neco 2024 Economics Question 22. It is one of the objective questions from the 2024 Neco Economics examination.

Difficulty level: Hard .

View More Neco 2024 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