Neco Model Questions Vol1 2021 Economics Question 41
Practice objective / multiple choice question 41 from the 2021 Neco Model Questions Vol1 Economics examination.
The city bus company has a fixed daily cost of N500,000 and a variable cost of N200 per passenger. The current ticket price is N1,500. Management is considering a uniform percentage discount \(d\%\) on the ticket price. Economic research shows that for each 1\% discount, the number of passengers rises by 2\% (the baseline daily passenger count at the original price is 500). Determine the discount rate that maximises daily profit and compute the maximum profit (in Naira). Give the discount to two decimal places and the profit to the nearest Naira.
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About This Question
This is Neco Model Questions Vol1 2021 Economics Question 41. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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