Neco Model Questions Vol1 2022 Economics Question 19

Practice objective / multiple choice question 19 from the 2022 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 19 NECO_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

A monopolist faces the linear demand curve \(P = 200 - 0.5Q\). Its total cost function is \(TC = 20Q + 0.02Q^{2}\).\n\nDetermine the profit‑maximising output level, the corresponding price, and the maximum profit the firm can earn.

Answer Options

Correct Answer A. Output ≈ 173 units, price ≈ ₦113.46, maximum profit ≈ ₦15,577.
B. Output ≈ 180 units, price ≈ ₦110.00, maximum profit ≈ ₦15,000.
C. Output ≈ 200 units, price ≈ ₦100.00, maximum profit ≈ ₦13,000.
D. Output ≈ 150 units, price ≈ ₦125.00, maximum profit ≈ ₦14,250.
Correct Answer
A
Correct Option:
Output ≈ 173 units, price ≈ ₦113.46, maximum profit ≈ ₦15,577.

About This Question

This is Neco Model Questions Vol1 2022 Economics Question 19. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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