Waec Model Questions Vol1 2024 Economics Question 38

Practice objective / multiple choice question 38 from the 2024 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 38 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A market has the linear demand curve P = 200 - 2Q. A firm's total cost function is TC = 20Q + 0.5Q².\n(a) Under perfect competition, where price equals marginal cost, determine the equilibrium price and quantity.\n(b) If the same firm operates as a monopoly, find the monopoly price and quantity.\n(c) Calculate the dead‑weight loss caused by monopoly relative to the competitive outcome.

Answer Options

Correct Answer A. Monopoly price ₦128, quantity 36 units; dead‑weight loss ₦864
B. Monopoly price ₦120, quantity 40 units; dead‑weight loss ₦960
C. Monopoly price ₦132, quantity 34 units; dead‑weight loss ₦800
D. Monopoly price ₦140, quantity 30 units; dead‑weight loss ₦720
Correct Answer
A
Correct Option:
Monopoly price ₦128, quantity 36 units; dead‑weight loss ₦864

About This Question

This is Waec Model Questions Vol1 2024 Economics Question 38. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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