Neco Model Questions Vol1 2017 Economics Question 27

Practice objective / multiple choice question 27 from the 2017 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 27 NECO_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

A firm's total cost (C) and total revenue (R) functions are \( C = 0.5Q^{2} + 20Q + 150 \) and \( R = 120Q - 0.2Q^{2} \) where Q is output in units. (i) Determine the output level that maximises profit. (ii) Calculate the maximum profit and the profit‑margin percentage (profit divided by revenue \(\times 100\)). Give answers to two decimal places.

Answer Options

A. Output = 80.00 units; Maximum profit = ₦3500.00; Profit‑margin = 48.00%
Correct Answer B. Output = 71.43 units; Maximum profit = ₦3421.43; Profit‑margin = 45.33%
C. Output = 70.00 units; Maximum profit = ₦3400.00; Profit‑margin = 44.00%
D. Output = 65.00 units; Maximum profit = ₦3000.00; Profit‑margin = 40.00%
Correct Answer
B
Correct Option:
Output = 71.43 units; Maximum profit = ₦3421.43; Profit‑margin = 45.33%

About This Question

This is Neco Model Questions Vol1 2017 Economics Question 27. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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