Gce Model Questions Vol1 2019 Agricultural Science Question 22
Practice objective / multiple choice question 22 from the 2019 Gce Model Questions Vol1 Agricultural Science examination.
A farmer produces maize. Fixed costs are \(\text{₦}200{,}000\) per season and the variable cost is \(\text{₦}30{,}000\) per tonne. Expected yield is 8 tonnes per season and the market price is \(\text{₦}45{,}000\) per tonne.\n(a) Calculate the break‑even yield (in tonnes).\n(b) The farmer can invest in a fertilizer that raises yield by 20 % but adds \(\text{₦}40{,}000\) to fixed costs and increases variable cost by \(\text{₦}5{,}000\) per tonne. Should the farmer adopt the fertilizer if the market price remains unchanged?\n(c) If after adoption the market price falls by 10 %, recalculate profit and state whether the fertilizer should now be adopted.
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About This Question
This is Gce Model Questions Vol1 2019 Agricultural Science Question 22. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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