Gce Model Questions Vol1 2022 Agricultural Science Question 33
Practice objective / multiple choice question 33 from the 2022 Gce Model Questions Vol1 Agricultural Science examination.
A farmer produces maize. Fixed costs are ₦200,000 per season and the variable cost is ₦30,000 per tonne. The current market price is ₦45,000 per tonne and the farmer expects to produce 8 tonnes. The government introduces a subsidy of ₦5,000 per tonne for the first 5 tonnes produced and a 10 % increase in the market price is expected next season.\n\n(a) Calculate the new break‑even quantity (in tonnes) after the subsidy and price increase.\n(b) Will the farmer make a profit if he still produces 8 tonnes? State the profit (or loss) in ₦.
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About This Question
This is Gce Model Questions Vol1 2022 Agricultural Science Question 33. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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