Neco Model Questions Vol1 2024 Economics Question 44

Practice objective / multiple choice question 44 from the 2024 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 44 NECO_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A monopolist faces demand \(P = 200 - 4Q\) and total cost \(TC = 20Q + 0.5Q^{2}\). A per‑unit tax of ₦30 is imposed. Find the profit‑maximising output and price after the tax, and compute the dead‑weight loss relative to the competitive equilibrium (rounded to two decimal places).

Answer Options

A. Output ≈ 18.2 units, Price ≈ ₦140.00, Dead‑weight loss ≈ ₦500.00
Correct Answer B. Output ≈ 16.7 units, Price ≈ ₦133.33, Dead‑weight loss ≈ ₦444.44
C. Output ≈ 14.5 units, Price ≈ ₦125.00, Dead‑weight loss ≈ ₦350.00
D. Output ≈ 15.0 units, Price ≈ ₦130.00, Dead‑weight loss ≈ ₦400.00
Correct Answer
B
Correct Option:
Output ≈ 16.7 units, Price ≈ ₦133.33, Dead‑weight loss ≈ ₦444.44

About This Question

This is Neco Model Questions Vol1 2024 Economics Question 44. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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