Gce Model Questions Vol1 2021 Agricultural Science Question 49
Practice objective / multiple choice question 49 from the 2021 Gce Model Questions Vol1 Agricultural Science examination.
A farmer grows maize on a 1‑hectare field. Fixed costs are \(\text{₦}20{,}000\) per hectare and variable costs are \(\text{₦}15{,}000\) per tonne of maize produced. The expected yield is 4 tonnes per hectare and the market price is \(\text{₦}25{,}000\) per tonne. The farmer is considering a fertilizer that costs \(\text{₦}5{,}000\) per hectare, increases yield by 20 % but also raises the variable cost by \(\text{₦}2{,}000\) per tonne. Should the farmer adopt the fertilizer? Calculate the net profit per hectare with and without the fertilizer and give a recommendation.
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About This Question
This is Gce Model Questions Vol1 2021 Agricultural Science Question 49. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Agricultural Science examination.
Difficulty level: Medium .
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