Neco Model Questions Vol1 2019 Economics Question 27

Practice objective / multiple choice question 27 from the 2019 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 27 NECO_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

A firm's total cost (in thousand Naira) for producing \(Q\) units is given by \(TC = 0.5Q^{2} + 20Q + 150\). Its total revenue (in thousand Naira) is \(TR = 30Q\). Determine the output level that maximises profit and state the maximum profit (in thousand Naira).

Answer Options

A. Output = 5 units; Maximum profit = -200 thousand Naira (a loss of 200,000 Naira)
B. Output = 12 units; Maximum profit = -50 thousand Naira (a loss of 50,000 Naira)
Correct Answer C. Output = 10 units; Maximum profit = -100 thousand Naira (a loss of 100,000 Naira)
D. Output = 15 units; Maximum profit = 50 thousand Naira (a profit of 50,000 Naira)
Correct Answer
C
Correct Option:
Output = 10 units; Maximum profit = -100 thousand Naira (a loss of 100,000 Naira)

About This Question

This is Neco Model Questions Vol1 2019 Economics Question 27. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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