Neco Model Questions Vol1 2018 Economics Question 5

Practice essay / theory question 5 from the 2018 Neco Model Questions Vol1 Economics examination. This question covers Cost and Revenue .

Neco Model Questions Vol1 2018 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 NECO_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • essay

A small manufacturing firm produces a single product. The firm incurs a fixed cost of ₦5,000 per month. For the first 100 units produced each month, the variable cost per unit is ₦200. Any production beyond 100 units requires overtime, raising the variable cost to ₦250 per unit for each additional unit. The firm sells each unit at a constant price of ₦350.

Question Parts

( a )

Write the expression for the total cost (TC) function for any level of output Q (in units).

( b )

Write the expression for total revenue (TR) as a function of Q and state the profit (π) function for the two output ranges identified in part (a).

( c )

Determine the break‑even output level (the smallest integer Q at which profit is zero or positive).

( d )

The firm wishes to earn a profit of ₦30,000 in a month. Calculate the output level required to achieve this target.

( e )

Briefly discuss two non‑price factors that could cause the firm’s cost structure to change in the future.

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About This Question

This is Neco Model Questions Vol1 2018 Economics Question 5. It is one of the essay questions from the 2018 Neco Model Questions Vol1 Economics examination.

The question covers Cost and Revenue .

View More Neco Model Questions Vol1 2018 Economics Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

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