Neco 2024 Economics Question 32

Practice objective / multiple choice question 32 from the 2024 Neco Economics examination.

Neco 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 32 NECO • 2024 • ECONOMICS • objective

A manufacturing firm has fixed costs of ₦10,000. Its variable cost per unit is ₦20 for the first 500 units and ₦15 for each unit produced beyond 500. The market price per unit is determined by the linear demand equation \(p = 80 - 0.05Q\). (i) Find the output level at which the firm breaks even (total revenue equals total cost). (ii) Calculate the profit when the firm produces 800 units.

Answer Options

A. Break‑even output = 150 units; profit at 800 units = ₦8,000.
B. Break‑even output = 200 units; profit at 800 units = ₦6,000.
Correct Answer C. Break‑even output = 200 units; profit at 800 units = ₦7,500.
D. Break‑even output = 250 units; profit at 800 units = ₦6,500.
Correct Answer
C
Correct Option:
Break‑even output = 200 units; profit at 800 units = ₦7,500.

About This Question

This is Neco 2024 Economics Question 32. It is one of the objective questions from the 2024 Neco Economics examination.

Difficulty level: Hard .

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