Neco Model Questions Vol1 2020 Economics Question 40

Practice objective / multiple choice question 40 from the 2020 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 40 NECO_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

A monopolist faces the linear demand curve \(P = 120 - 0.5Q\) and has a marginal cost function \(MC = 20 + 0.1Q\). Determine the profit‑maximising output level \(Q\) (rounded to the nearest whole unit) and the corresponding price \(P\).

Answer Options

A. Q = 85 units, P = $77.5
B. Q = 95 units, P = $72.0
Correct Answer C. Q = 91 units, P = $74.5
D. Q = 100 units, P = $70.0
Correct Answer
C
Correct Option:
Q = 91 units, P = $74.5

About This Question

This is Neco Model Questions Vol1 2020 Economics Question 40. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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