Waec Model Questions Vol1 2023 Economics Question 45

Practice objective / multiple choice question 45 from the 2023 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 45 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

A firm sells the same product in two separate markets. The demand curves are P₁ = 120 - Q₁ and P₂ = 80 - 0.5Q₂, where P is price (₦) and Q is quantity sold in each market. The firm's marginal cost is constant at ₦20. Assuming the firm can practice third‑degree price discrimination, determine the profit‑maximising output and price in each market and compute the total profit.

Answer Options

Correct Answer A. Q₁=50, P₁=₦70; Q₂=60, P₂=₦50; Total profit = ₦4,300
B. Q₁=55, P₁=₦65; Q₂=55, P₂=₦55; Total profit = ₦4,500
C. Q₁=45, P₁=₦75; Q₂=65, P₂=₦48; Total profit = ₦4,200
D. Q₁=40, P₁=₦80; Q₂=70, P₂=₦45; Total profit = ₦4,150
Correct Answer
A
Correct Option:
Q₁=50, P₁=₦70; Q₂=60, P₂=₦50; Total profit = ₦4,300

About This Question

This is Waec Model Questions Vol1 2023 Economics Question 45. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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