Waec Model Questions Vol1 2017 Economics Question 45

Practice objective / multiple choice question 45 from the 2017 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 45 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • objective

The market demand for a product is given by \(P = 100 - 2Q\), where \(P\) is price in ₦ and \(Q\) is quantity demanded. The industry's marginal cost is constant at \(MC = 20\) ₦ per unit.\n(a) Find the equilibrium price and quantity under perfect competition.\n(b) Find the monopoly's profit‑maximising price and quantity.\n(c) Calculate the dead‑weight loss caused by monopoly.

Answer Options

Correct Answer A. (a) P = ₦20, Q = 40; (b) P = ₦60, Q = 20; (c) Dead‑weight loss = ₦400
B. (a) P = ₦25, Q = 37.5; (b) P = ₦55, Q = 22.5; (c) Dead‑weight loss = ₦425
C. (a) P = ₦20, Q = 30; (b) P = ₦50, Q = 25; (c) Dead‑weight loss = ₦300
D. (a) P = ₦30, Q = 35; (b) P = ₦70, Q = 15; (c) Dead‑weight loss = ₦350
Correct Answer
A
Correct Option:
(a) P = ₦20, Q = 40; (b) P = ₦60, Q = 20; (c) Dead‑weight loss = ₦400

About This Question

This is Waec Model Questions Vol1 2017 Economics Question 45. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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