Neco 2025 Economics Question 36

Practice objective / multiple choice question 36 from the 2025 Neco Economics examination.

Neco 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 36 NECO • 2025 • ECONOMICS • objective

In a market for a product, the demand curve is given by \( P = 120 - 2Q \) and the total cost function by \( TC = 20Q + 0.5Q^{2} \).\n\n(i) Determine the monopoly profit‑maximising price and quantity.\n(ii) Compute the consumer surplus under monopoly.\n(iii) If the market were perfectly competitive, find the equilibrium price and quantity, and calculate the difference in total surplus (monopoly surplus minus competitive surplus).

Answer Options

A. Difference in total surplus = \( \frac{2600}{10} \) ≈ 260.0
B. Difference in total surplus = \( \frac{2500}{9} \) ≈ 277.8
Correct Answer C. Difference in total surplus = \( \frac{2600}{9} \) ≈ 288.9
D. Difference in total surplus = \( \frac{2600}{8} \) ≈ 325.0
Correct Answer
C
Correct Option:
Difference in total surplus = \( \frac{2600}{9} \) ≈ 288.9

About This Question

This is Neco 2025 Economics Question 36. It is one of the objective questions from the 2025 Neco Economics examination.

Difficulty level: Medium .

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