Neco 2024 Economics Question 46

Practice objective / multiple choice question 46 from the 2024 Neco Economics examination.

Neco 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 46 NECO • 2024 • ECONOMICS • objective

In a market the demand curve is given by \( P = 120 - 2Q \) and the marginal cost of production is constant at \( MC = 20 \). (a) Determine the equilibrium price and quantity under perfect competition. (b) Assuming the same cost structure, find the monopoly output and price by equating marginal revenue to marginal cost. (c) Calculate the dead‑weight loss (DWL) caused by the monopoly. (d) If the government imposes a price ceiling of \( P = 40 \), what is the resulting DWL?

Answer Options

A. Pc=25, Qc=45; Qm=20, Pm=65; DWL_monopoly=500; DWL_ceiling=80
Correct Answer B. Pc=20, Qc=50; Qm=25, Pm=70; DWL_monopoly=625; DWL_ceiling=100
C. Pc=20, Qc=60; Qm=30, Pm=80; DWL_monopoly=900; DWL_ceiling=150
D. Pc=20, Qc=50; Qm=20, Pm=80; DWL_monopoly=400; DWL_ceiling=120
Correct Answer
B
Correct Option:
Pc=20, Qc=50; Qm=25, Pm=70; DWL_monopoly=625; DWL_ceiling=100

About This Question

This is Neco 2024 Economics Question 46. It is one of the objective questions from the 2024 Neco Economics examination.

Difficulty level: Medium .

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