Neco Model Questions Vol1 2023 Economics Question 45
Practice objective / multiple choice question 45 from the 2023 Neco Model Questions Vol1 Economics examination.
A firm produces widgets. Total cost (in thousand Naira) is \(TC = 0.02Q^{3} - 0.3Q^{2} + 5Q + 100\), where \(Q\) is output in thousand units. Total revenue (in thousand Naira) is \(R = (20 - 0.5Q)Q\). (a) Determine the output level that maximises profit and compute the maximum profit. (b) If the firm's fixed cost is ₦100 000, should it continue operating in the short run? Justify using the price‑versus‑average‑variable‑cost rule.
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About This Question
This is Neco Model Questions Vol1 2023 Economics Question 45. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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