Neco 2025 Economics Question 1

Practice objective / multiple choice question 1 from the 2025 Neco Economics examination.

Neco 2025 Economics Objective / Multiple Choice Hard Difficulty
Question 1 NECO • 2025 • ECONOMICS • objective

A farmer faces the market demand equation \( P = 150 - 0.1Q \) where \(P\) is the price per tonne (₦) and \(Q\) is the quantity in tonnes. The farmer's total cost function is \( C(Q) = 2000 + 5Q + 0.02Q^{2} \). The government imposes a per‑unit tax of ₦10 on each tonne sold. Determine the quantity that maximizes the farmer's profit after tax, the maximum profit, and the net price received per tonne at that quantity.

Answer Options

Correct Answer A. Quantity = 562.5 tonnes; Maximum profit = ₦35,968.75; Net price = ₦83.75 per tonne
B. Quantity = 500 tonnes; Maximum profit = ₦30,000.00; Net price = ₦85.00 per tonne
C. Quantity = 600 tonnes; Maximum profit = ₦40,500.00; Net price = ₦80.00 per tonne
D. Quantity = 562.5 tonnes; Maximum profit = ₦36,500.00; Net price = ₦84.00 per tonne
Correct Answer
A
Correct Option:
Quantity = 562.5 tonnes; Maximum profit = ₦35,968.75; Net price = ₦83.75 per tonne

About This Question

This is Neco 2025 Economics Question 1. It is one of the objective questions from the 2025 Neco Economics examination.

Difficulty level: Hard .

View More Neco 2025 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