Waec Model Questions Vol1 2018 Economics Question 2

Practice objective / multiple choice question 2 from the 2018 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2018 Economics Objective / Multiple Choice Hard Difficulty
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

A farmer has 100 hectares of land to allocate between wheat and maize. Yield per hectare: wheat 2.5 tonnes, maize 3 tonnes. Market prices: wheat ₦120 per kg, maize ₦90 per kg. Production cost per hectare: wheat ₦150,000, maize ₦180,000. Because of soil fertility, the profit per hectare for wheat is ₦150,000 for the first 50 ha and then falls by ₦5,000 for each additional hectare. For maize the profit per hectare is ₦90,000 for the first 40 ha and then falls by ₦3,000 for each additional hectare. The farmer must allocate at least 30% of the land to wheat and cannot allocate more than 60% to maize. Determine the optimal allocation of hectares to wheat and maize that maximises total profit and state the maximum profit (in ₦).

Answer Options

A. 64 ha wheat, 36 ha maize; maximum profit = ₦12,260,000
Correct Answer B. 62 ha wheat, 38 ha maize; maximum profit = ₦12,330,000
C. 58 ha wheat, 42 ha maize; maximum profit = ₦12,080,000
D. 60 ha wheat, 40 ha maize; maximum profit = ₦12,150,000
Correct Answer
B
Correct Option:
62 ha wheat, 38 ha maize; maximum profit = ₦12,330,000

About This Question

This is Waec Model Questions Vol1 2018 Economics Question 2. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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