Gce Model Questions Vol1 2020 Economics Question 25
Practice objective / multiple choice question 25 from the 2020 Gce Model Questions Vol1 Economics examination.
A farmer's total cost function for wheat production is \(TC = 0.5Q^{2} + 20Q + 100\) (costs in £ million, \(Q\) in tonnes). The market price of wheat is £30 per tonne. The government offers a per‑unit subsidy \(s\) that the farmer can claim only if output exceeds 40 tonnes. Determine the minimum subsidy per tonne that will induce the farmer to produce at least 50 tonnes, and compute the farmer's profit at that output level.
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About This Question
This is Gce Model Questions Vol1 2020 Economics Question 25. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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