Waec Model Questions Vol1 2017 Geography Question 8
Practice objective / multiple choice question 8 from the 2017 Waec Model Questions Vol1 Geography examination.
A firm plans to locate a new plant at either site A or site B. The variable production cost per unit consists of labour cost plus transport cost per unit. Labour cost per unit is ₦150 at A and ₦120 at B. Transport cost per unit equals distance to the main market multiplied by ₦0.8 per km; distances are 80 km for A and 150 km for B. Site B receives a 5 % tax incentive on its total variable cost and a one‑time subsidy of ₦200 000, amortised over 5 years. The plant will produce 10 000 units per year. Which site yields the lower total annual cost and by how much (in ₦)?
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About This Question
This is Waec Model Questions Vol1 2017 Geography Question 8. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Geography examination.
Difficulty level: Hard .
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