Neco Model Questions Vol1 2025 Economics Question 39

Practice objective / multiple choice question 39 from the 2025 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 39 NECO_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A firm in a monopolistically competitive market faces the demand curve \( P = 200 - 0.5Q \). Its total cost function is \( TC = 5{,}000 + 20Q + 0.1Q^{2} \). Find the output level that maximises profit, the corresponding price, and the profit earned.

Answer Options

A. Q = 130 units; P = ₦135; Profit = ₦7,200
Correct Answer B. Q = 150 units; P = ₦125; Profit = ₦8,500
C. Q = 140 units; P = ₦130; Profit = ₦8,000
D. Q = 170 units; P = ₦115; Profit = ₦9,600
Correct Answer
B
Correct Option:
Q = 150 units; P = ₦125; Profit = ₦8,500

About This Question

This is Neco Model Questions Vol1 2025 Economics Question 39. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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