Neco Model Questions Vol1 2023 Economics Question 26
Practice objective / multiple choice question 26 from the 2023 Neco Model Questions Vol1 Economics examination.
A firm's total cost function for producing \(q\) units is \(C(q)=2000+5q+0.02q^{2}\) (₦). The market price per unit is determined by the linear demand equation \(p=120-0.1q\) (₦). The government imposes a per‑unit tax of ₦2 on each unit sold, but if the firm produces more than 500 units, the tax on each unit above 500 falls to ₦1. Determine the smallest whole number of units the firm must produce and sell in order to earn a positive profit.
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About This Question
This is Neco Model Questions Vol1 2023 Economics Question 26. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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