Waec Model Questions Vol1 2017 Economics Question 44

Practice objective / multiple choice question 44 from the 2017 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2017 Economics Objective / Multiple Choice Hard Difficulty
Question 44 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

A manufacturing firm has the total cost function \(TC = 0.02Q^{3} - 0.3Q^{2} + 10Q + 500\), where \(Q\) is output in units and costs are in ₦. The market price of the product is constant at ₦20 per unit.\n(a) Determine the level of output that minimizes average total cost (ATC).\n(b) At that output, calculate the firm's profit (or loss).

Answer Options

A. (a) Q ≈ 30 units; (b) Profit of approximately ₦120
Correct Answer B. (a) Q ≈ 26 units; (b) Loss of approximately ₦389
C. (a) Q ≈ 26 units; (b) Profit of approximately ₦50
D. (a) Q ≈ 22 units; (b) Loss of approximately ₦450
Correct Answer
B
Correct Option:
(a) Q ≈ 26 units; (b) Loss of approximately ₦389

About This Question

This is Waec Model Questions Vol1 2017 Economics Question 44. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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