Gce Model Questions Vol1 2018 Economics Question 31

A farmer cultivates wheat and soybeans on separate fields. The fixed cost for wheat production is \(\text{₦}120{,}000\) and for soybeans \(\text{₦}80{,}000\). The variable cost per tonne is the same for both crops (denoted \(v\)). When the wheat price is \(\text{₦}420\) per tonne, the farmer produces 400 tonnes and makes a profit of \(\text{₦}30{,}000\). When the soybeans price is \(\text{₦}280\) per tonne, the farmer produces 300 tonnes and incurs a loss of \(\text{₦}9{,}500\). Determine: (a) the variable cost per tonne \(v\); (b) the soybeans price that would give the farmer zero profit (break‑even) if he produced 300 tonnes; (c) if the farmer reallocates land to produce 500 tonnes of wheat and 200 tonnes of soybeans, and the market prices are \(\text{₦}420\) for wheat and the break‑even price from part (b) for soybeans, calculate the total profit.