Waec Model Questions Vol1 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2020 Economics Objective / Multiple Choice Hard Difficulty
Question 21 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

A steel rod manufacturer faces the market demand P = 2000 - 0.2Q (₦ per unit, Q in units). Fixed cost is ₦500,000. The variable cost per unit is ₦1,200 for the first 2,000 units and ₦1,000 for each unit produced beyond 2,000. Determine the output level that maximizes profit and state the maximum profit (in ₦).

Answer Options

A. 2,000 units; ₦300,000
B. 2,500 units; ₦300,000
C. 3,000 units; ₦400,000
Correct Answer D. 2,500 units; ₦350,000
Correct Answer
D
Correct Option:
2,500 units; ₦350,000

About This Question

This is Waec Model Questions Vol1 2020 Economics Question 21. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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