Neco Model Questions Vol1 2023 Economics Question 25

Practice objective / multiple choice question 25 from the 2023 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 25 NECO_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

A firm's short‑run total cost function (in thousand Naira) is \(TC = 0.02Q^{3} - 0.3Q^{2} + 12Q + 50\), where \(Q\) is output in units. Find the level of output that minimizes average total cost (ATC) and give the minimum ATC value (to two decimal places).

Answer Options

Correct Answer A. Output ≈ 13.94 units (≈14), Minimum ATC ≈ 15.30 thousand Naira
B. Output ≈ 12.57 units (≈13), Minimum ATC ≈ 16.45 thousand Naira
C. Output ≈ 15.21 units (≈15), Minimum ATC ≈ 14.80 thousand Naira
D. Output ≈ 10.03 units (≈10), Minimum ATC ≈ 18.10 thousand Naira
Correct Answer
A
Correct Option:
Output ≈ 13.94 units (≈14), Minimum ATC ≈ 15.30 thousand Naira

About This Question

This is Neco Model Questions Vol1 2023 Economics Question 25. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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