Waec Model Questions Vol1 2019 Economics Question 2
Practice objective / multiple choice question 2 from the 2019 Waec Model Questions Vol1 Economics examination.
A farmer cultivates maize on 5 hectares. Expected yield is 2.8 tonnes per hectare and the market price is ₦120 per kg. Variable cost per hectare is ₦150,000 and fixed cost is ₦200,000. The government offers a subsidy that pays 20% of the variable cost per hectare if the farmer adopts an improved seed. The improved seed raises yield by 15% but also raises variable cost by 10% (before the subsidy). What is the minimum market price per kg at which the farmer will earn at least the same profit as before adopting the seed?
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About This Question
This is Waec Model Questions Vol1 2019 Economics Question 2. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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