Neco Model Questions Vol1 2022 Economics Question 8
Practice objective / multiple choice question 8 from the 2022 Neco Model Questions Vol1 Economics examination.
A bus company operates a 100 km round‑trip route each day. Fixed costs are ₦50,000 per day and the variable cost is ₦150 per kilometre. The number of passengers willing to travel each day depends on the fare \(p\) (in naira) according to the demand function \(Q = 1,200 - 5p\) (where \(Q\) is the number of passengers).\n\n(a) Write the profit function \(\Pi(p)\) in terms of \(p\).\n(b) Find the minimum fare that allows the company to break even (i.e., \(\Pi = 0\)). Give your answer to the nearest naira.
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About This Question
This is Neco Model Questions Vol1 2022 Economics Question 8. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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