Neco Model Questions Vol1 2021 Economics Question 43

Practice objective / multiple choice question 43 from the 2021 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 43 NECO_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

A firm in a monopolistically competitive market faces the demand curve \(P = 200 - 2Q\). Its total cost function is \(TC = 50Q + 0.5Q^{2} + 1000\).\n\n(i) Determine the profit‑maximising output, price and profit.\n(ii) If the same firm operated under perfect competition (price taker) with the same cost structure, what would be the competitive equilibrium output, price and profit? Give all monetary values to the nearest Naira.

Answer Options

Correct Answer A. Monopoly: Q=30, P=N140, profit=N1,250. Competition: Q=50, P=N100, profit=N250
B. Monopoly: Q=35, P=N130, profit=N1,400. Competition: Q=55, P=N90, profit=N200
C. Monopoly: Q=25, P=N150, profit=N1,000. Competition: Q=45, P=N110, profit=N300
D. Monopoly: Q=28, P=N145, profit=N1,150. Competition: Q=48, P=N95, profit=N275
Correct Answer
A
Correct Option:
Monopoly: Q=30, P=N140, profit=N1,250. Competition: Q=50, P=N100, profit=N250

About This Question

This is Neco Model Questions Vol1 2021 Economics Question 43. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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