Neco Model Questions Vol1 2025 Economics Question 5

Practice essay / theory question 5 from the 2025 Neco Model Questions Vol1 Economics examination. This question covers Cost and Revenue .

Neco Model Questions Vol1 2025 Economics Essay / Theory

Topic: Cost and Revenue

Question 5 NECO_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • essay

A small manufacturing firm produces widgets. Its total cost (TC) function in naira is given by TC = 0.5Q^2 + 30Q + 200, where Q is the number of widgets produced per month. The market demand for the widget is described by the inverse demand function P = 200 – Q, where P is the price per widget in naira.

Question Parts

( a )

Derive the profit function and obtain the output level that maximises profit. Show all steps.

( b )

Calculate the maximum profit at the output found in part (a).

( c )

Determine the break‑even output(s) where profit is zero.

( d )

The government introduces a specific tax of ₦20 per widget produced. Re‑calculate the profit‑maximising output under the tax and comment on the change.

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About This Question

This is Neco Model Questions Vol1 2025 Economics Question 5. It is one of the essay questions from the 2025 Neco Model Questions Vol1 Economics examination.

The question covers Cost and Revenue .

View More Neco Model Questions Vol1 2025 Economics Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

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