Gce Model Questions Vol1 2021 Economics Question 35

Practice objective / multiple choice question 35 from the 2021 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 35 GCE_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

A farmer must transport 500 tonnes of wheat to market. Two transport options are available: - Rail: cost £4 per tonne, maximum capacity 300 tonnes, and a fixed handling fee of £200 if any rail shipment is used. - Truck: cost £6 per tonne, unlimited capacity, no fixed fee. Determine the quantities to be shipped by rail and by truck that minimise total transport cost, and state the minimum total cost in £.

Answer Options

A. Rail 0 tonnes, Truck 500 tonnes; Minimum cost £3000
Correct Answer B. Rail 300 tonnes, Truck 200 tonnes; Minimum cost £2600
C. Rail 250 tonnes, Truck 250 tonnes; Minimum cost £2700
D. Rail 300 tonnes, Truck 200 tonnes; Minimum cost £2400
Correct Answer
B
Correct Option:
Rail 300 tonnes, Truck 200 tonnes; Minimum cost £2600

About This Question

This is Gce Model Questions Vol1 2021 Economics Question 35. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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