Neco Model Questions Vol1 2019 Economics Question 21

Table shows the total cost (TC) in thousand naira for a textile firm at different output levels (Q) measured in units. \[\begin{array}{c|c} Q (\text{units}) & TC (\text{thousand naira})\\ \hline 0 & 150\\ 100 & 210\\ 200 & 280\\ 300 & 360\\ 400 & 460\\ 500 & 580 \end{array}\] The market price of the product is ₦1,200 per unit. (a) Calculate the average total cost at \(Q = 300\) units. (b) Calculate the marginal cost between \(Q = 300\) and \(Q = 400\) units. (c) Identify the highest output level (in whole hundreds of units) at which the firm is still experiencing economies of scale (i.e., where average total cost is decreasing). (d) Assuming the firm wants to maximise profit, what is the smallest output level (in whole hundreds of units) at which it first attains its maximum profit?