Neco Model Questions Vol1 2020 Economics Question 13

Practice objective / multiple choice question 13 from the 2020 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 13 NECO_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

A monopolistically competitive firm faces the demand curve \(P = 200 - 4Q\) and has total cost \(TC = 20Q + 100\). Find the profit‑maximising output and price, and compute the consumer surplus at that equilibrium.

Answer Options

A. Output Q = 25 units; Price P = 100 Naira; Consumer surplus = 1250 Naira
Correct Answer B. Output Q = 22.5 units; Price P = 110 Naira; Consumer surplus = 1012.5 Naira
C. Output Q = 20 units; Price P = 120 Naira; Consumer surplus = 1200 Naira
D. Output Q = 18 units; Price P = 128 Naira; Consumer surplus = 1152 Naira
Correct Answer
B
Correct Option:
Output Q = 22.5 units; Price P = 110 Naira; Consumer surplus = 1012.5 Naira

About This Question

This is Neco Model Questions Vol1 2020 Economics Question 13. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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