Neco Model Questions Vol1 2021 Economics Question 5

Practice essay / theory question 5 from the 2021 Neco Model Questions Vol1 Economics examination. This question covers Cost and Revenue .

Neco Model Questions Vol1 2021 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 NECO_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • essay

A firm operates in a perfectly competitive market where the market price of its product is ₦200 per unit. The firm’s total cost (TC) function is given by: TC = 0.5Q² + 30Q + 1,000 where Q is the quantity of output produced. Answer the following questions:

Question Parts

( a )

Derive the marginal cost (MC) function of the firm.

( b )

Determine the level of output that maximises the firm’s profit.

( c )

Calculate the firm’s total revenue, total cost and profit at the profit‑maximising output.

( d )

State the shutdown price for the firm and advise whether it should continue operating in the short run.

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About This Question

This is Neco Model Questions Vol1 2021 Economics Question 5. It is one of the essay questions from the 2021 Neco Model Questions Vol1 Economics examination.

The question covers Cost and Revenue .

View More Neco Model Questions Vol1 2021 Economics Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

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