Waec Model Questions Vol1 2020 Economics Question 24

Practice objective / multiple choice question 24 from the 2020 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 24 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

A monopolist faces the demand curve P = 500 - 0.02Q (₦ per unit, Q in units). Its total cost function is TC = 100,000 + 150Q (₦). (a) Determine the profit‑maximising output, price and profit. (b) What output would prevail under perfect competition (where P = MC)?

Answer Options

A. Monopoly: output 8,500 units, price ₦340, profit ₦1,500,000; Perfect competition: output 18,000 units
Correct Answer B. Monopoly: output 8,750 units, price ₦325, profit ₦1,431,250; Perfect competition: output 17,500 units
C. Monopoly: output 8,750 units, price ₦350, profit ₦1,400,000; Perfect competition: output 16,000 units
D. Monopoly: output 9,000 units, price ₦300, profit ₦1,200,000; Perfect competition: output 15,000 units
Correct Answer
B
Correct Option:
Monopoly: output 8,750 units, price ₦325, profit ₦1,431,250; Perfect competition: output 17,500 units

About This Question

This is Waec Model Questions Vol1 2020 Economics Question 24. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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