Neco 2024 Economics Question 25

Practice objective / multiple choice question 25 from the 2024 Neco Economics examination.

Neco 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 25 NECO • 2024 • ECONOMICS • objective

A monopolist faces the market demand \( P = 100 - 0.5 Q \) (price in Naira, Q in units) and has a constant marginal cost of ₦20 per unit. Determine the profit‑maximising output and price, and calculate the dead‑weight loss relative to the perfectly competitive outcome.

Answer Options

A. Monopoly output = 80 units, price = ₦70, dead‑weight loss = ₦1,200
Correct Answer B. Monopoly output = 80 units, price = ₦60, dead‑weight loss = ₦1,600
C. Monopoly output = 100 units, price = ₦50, dead‑weight loss = ₦2,000
D. Monopoly output = 60 units, price = ₦70, dead‑weight loss = ₦2,400
Correct Answer
B
Correct Option:
Monopoly output = 80 units, price = ₦60, dead‑weight loss = ₦1,600

About This Question

This is Neco 2024 Economics Question 25. It is one of the objective questions from the 2024 Neco Economics examination.

Difficulty level: Medium .

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