Waec Model Questions Vol1 2025 Economics Question 33

Practice objective / multiple choice question 33 from the 2025 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 33 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

A firm in a monopolistically competitive market faces the demand curve P = 120 - 0.5Q and has total cost TC = 40,000 + 20Q + 0.1Q². Find the profit‑maximising output and price, and state whether the firm makes an economic profit or loss. Round the output to two decimal places and give profit/loss to the nearest naira.

Answer Options

Correct Answer A. Output ≈ 83.33 units; Price ≈ ₦78.33; Economic loss ≈ ₦35,833
B. Output ≈ 70.00 units; Price ≈ ₦85.00; Economic loss ≈ ₦30,000
C. Output ≈ 83.33 units; Price ≈ ₦80.00; Economic loss ≈ ₦35,000
D. Output ≈ 90.00 units; Price ≈ ₦75.00; Economic loss ≈ ₦40,000
Correct Answer
A
Correct Option:
Output ≈ 83.33 units; Price ≈ ₦78.33; Economic loss ≈ ₦35,833

About This Question

This is Waec Model Questions Vol1 2025 Economics Question 33. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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