Neco 2025 Economics Question 5

Practice essay / theory question 5 from the 2025 Neco Economics examination. This question covers Cost and Revenue .

Neco 2025 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 NECO • 2025 • ECONOMICS • essay

A small manufacturing firm produces widgets. Its fixed cost is ₦150,000 per month. The variable cost per widget is ₦200. The market price per widget depends on the quantity sold according to the linear demand equation P = 1200 - 0.5Q, where P is the price in naira and Q is the quantity of widgets produced and sold in a month.

Question Parts

( a )

Determine the break‑even output (the quantity at which total revenue equals total cost).

( b )

If the firm decides to produce 800 widgets, calculate the profit (or loss) for that month.

( c )

Assume the variable cost per widget rises by 10 %. Explain how this change affects the break‑even output and state the new break‑even quantity (rounded to the nearest unit).

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About This Question

This is Neco 2025 Economics Question 5. It is one of the essay questions from the 2025 Neco Economics examination.

The question covers Cost and Revenue .

View More Neco 2025 Economics Questions More Neco Practice Questions Back to Questions

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