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WAEC Economics 2019 Question 19

Question 19

Theory of Costs and Revenue

Table II shows the short-run cost of a firm.
Quantity (kg) | Fixed Cost ($) | Variable Cost ($) | Total Cost ($) | Marginal Cost ($) | Average ($)
1 | 750 | 200 | 950 | – | 950
2 | 750 | 560 | 1310 | 360 | 655
3 | 750 | 900 | P | Q | 550
Calculate the value of Q

  1. A.$350
  2. B.$340
  3. C.$360
  4. D.$370
Show the answer and explanation

Answer: B ($340)

Explanation

P = 750 + 900 = $1,650; Q = MC = 1,650 − 1,310 = $340.