Waec Model Questions Vol1 2024 Economics Question 29

Practice objective / multiple choice question 29 from the 2024 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 29 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A textile firm has the total cost function (in million Naira) TC = 0.5Q² + 20Q + 150, where Q is output in thousand units. The government imposes a specific tax of 5 million Naira per thousand units produced. After the tax, at what level of output (in thousand units) does the firm achieve the minimum average total cost, and what is that minimum ATC (in million Naira per thousand units)?

Answer Options

A. Output ≈ 15.0 thousand units; Minimum ATC ≈ 44.50 million Naira per thousand units
Correct Answer B. Output ≈ 17.3 thousand units; Minimum ATC ≈ 42.32 million Naira per thousand units
C. Output ≈ 12.5 thousand units; Minimum ATC ≈ 48.75 million Naira per thousand units
D. Output ≈ 20.0 thousand units; Minimum ATC ≈ 40.10 million Naira per thousand units
Correct Answer
B
Correct Option:
Output ≈ 17.3 thousand units; Minimum ATC ≈ 42.32 million Naira per thousand units

About This Question

This is Waec Model Questions Vol1 2024 Economics Question 29. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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