Gce Model Questions Vol1 2020 Economics Question 38
Practice objective / multiple choice question 38 from the 2020 Gce Model Questions Vol1 Economics examination.
An agricultural firm uses fertilizer to increase wheat output. The following data show the total wheat output (in tonnes) obtained for each level of fertilizer applied (in kilograms):\n\n| Fertilizer (kg) | Output (tonnes) |\n|----------------|-----------------|\n| 0 | 0 |\n| 10 | 2 |\n| 20 | 5 |\n| 30 | 9 |\n| 40 | 12 |\n| 50 | 14 |\n\nThe market price of wheat is 2,000 Naira per tonne and the fertilizer costs 100 Naira per kilogram. The firm has a budget of 4,000 Naira for fertilizer. Assuming the firm wants to maximise profit, how many kilograms of fertilizer should it apply?
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About This Question
This is Gce Model Questions Vol1 2020 Economics Question 38. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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