Neco Model Questions Vol1 2018 Economics Question 43

Practice objective / multiple choice question 43 from the 2018 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2018 Economics Objective / Multiple Choice Hard Difficulty
Question 43 NECO_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

A city bus service charges a fare of ₦500 per ride and carries an average of 1,200 passengers per day. For every increase of ₦50 in the fare, daily ridership falls by 8\% of the original ridership. Determine the fare that maximises the company's daily revenue and state the maximum revenue.

Answer Options

Correct Answer A. Optimal fare = ₦562.5, Maximum daily revenue = ₦607,500
B. Optimal fare = ₦575, Maximum daily revenue = ₦610,000
C. Optimal fare = ₦550, Maximum daily revenue = ₦600,000
D. Optimal fare = ₦562.5, Maximum daily revenue = ₦600,000
Correct Answer
A
Correct Option:
Optimal fare = ₦562.5, Maximum daily revenue = ₦607,500

About This Question

This is Neco Model Questions Vol1 2018 Economics Question 43. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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