Waec Model Questions Vol1 2019 Economics Question 45

Practice objective / multiple choice question 45 from the 2019 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 45 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

A firm's total cost function (in million Naira) for producing q units is C(q)=0.05q²+30q+200. The market price‑demand relationship is P = 500 - 0.2q (price per unit in Naira). Determine the output level that maximizes profit, compute the maximum profit, and state whether the firm should continue operating if the fixed cost is ₦200 million and the shutdown price is ₦150 per unit.

Answer Options

A. Output = 940 units; maximum profit ≈ ₦190.2 billion; shut down
B. Output = 1,020 units; maximum profit ≈ ₦250.3 billion; continue operating
C. Output = 800 units; maximum profit ≈ ₦180.5 billion; continue operating
Correct Answer D. Output = 940 units; maximum profit ≈ ₦220.7 billion; continue operating
Correct Answer
D
Correct Option:
Output = 940 units; maximum profit ≈ ₦220.7 billion; continue operating

About This Question

This is Waec Model Questions Vol1 2019 Economics Question 45. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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