Neco Model Questions Vol1 2017 Economics Question 15
Practice objective / multiple choice question 15 from the 2017 Neco Model Questions Vol1 Economics examination.
A manufacturing firm produces two products, A and B. The selling price and variable cost per unit are: Product A - price ₦150, variable cost ₦90; Product B - price ₦200, variable cost ₦130. Fixed costs amount to ₦50,000. Currently the firm produces 200 units of A and 150 units of B. Management is considering a plan to increase production of A by 50 units and reduce production of B by 30 units. Will the firm's total profit increase, decrease, or remain unchanged under the proposed plan? State the change in profit (in naira).
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About This Question
This is Neco Model Questions Vol1 2017 Economics Question 15. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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