2025 WAEC Economics Theory A. Table 2 below shows the unit prices and quantities of hats produced bu a...

WAEC 2025

A. Table 2 below shows the unit prices and quantities of hats produced bu a firm. Study it and answer the questions that follow:
Table 2

Quantity	Unit Price($)	Total Revenue($)	Marginal Revenue($)	Average Revenue($)
10	180	1800	---	180
20	150	3000	120	X
30	U	3600	60	120
40	100	V	W	Y
50	80	4000	0	80
60	60	3600	-40	60

Complete the values of U,V,W and Y

B.

Quantity	Unit Price($)	Total Revenue($)	Marginal Revenue($)	Average Revenue($)
10	180	1800	---	180
20	150	3000	120	X
30	U	3600	60	120
40	100	V	W	Y
50	80	4000	0	80
60	60	3600	-40	60

In what type of market is the firm operating? Explain your answer

C.

Quantity	Unit Price($)	Total Revenue($)	Marginal Revenue($)	Average Revenue($)
10	180	1800	---	180
20	150	3000	120	X
30	U	3600	60	120
40	100	V	W	Y
50	80	4000	0	80
60	60	3600	-40	60

If the firm's marginal cost is $60.00 at all level of outputs, at what level of output will it be in equilibrium? Explain your answer.

D.

Quantity	Unit Price($)	Total Revenue($)	Marginal Revenue($)	Average Revenue($)
10	180	1800	---	180
20	150	3000	120	X
30	U	3600	60	120
40	100	V	W	Y
50	80	4000	0	80
60	60	3600	-40	60

If a total cost of $600.00 is incurred when 50 units of hats are produced, determine the margin of profit or loss made

Quantity	Unit Price($)	Total Revenue($)	Marginal Revenue($)	Average Revenue($)
10	180	1800	---	180
20	150	3000	120	X
30	U	3600	60	120
40	100	V	W	Y
50	80	4000	0	80
60	60	3600	-40	60

What is another name for marginal cost?

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Explanation

A. U : Unit price = TR/Q
=3600/30
=$120

V: Total revenue = Price x quantity
=100 x40
$4,000

W: Marginal revenue = ATR/4Q
= 4000 - 3600/40-30
= 400/10
=$40
X: Average revenue: TR/Q
=3000/20
=$150

Y: Average revenue: TR/Q
= 4000/40
=$100

B. Perfect competitive market. It is a perfect market because the average revenue is also the price and also the average revenue and the marginal revenue for the firms are equal to the product's price to the buyer.

C. The firm will be at equilibrium at output 30. The firm is at equilibrium when the Marginal Revenue is equal to the Marginal Cost
i.e MR = MC

D. At 50 units
Total cost =$600
Total revenue =$4,000
Since the total revenue is higher than the total cost, then there will be profit
Profit = TR - TC
= 4000- 600
=$3,400

E. Marginal cost is also known as incremental cost, extra cost.