WAEC Economics 2021 Theory — Question 8
Question 8 of 26 from the West African Examinations Council (WAEC) Economics 2021 Theory paper, with the correct answer and a full explanation.
Advertisement
2(c). If the firm's marginal cost is $60.00 at all levels of output, at what level of output will it be in equilibrium? Explain your answer.
Model answer
A firm is at equilibrium (profit-maximising) where MR = MC. Since MC = $60, the firm will be at equilibrium at the level of output where MR from the table also equals $60 — from the given data, this occurs at 30 units of output.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.