Gce Model Questions Vol1 2023 Agricultural Science Question 5

Practice objective / multiple choice question 5 from the 2023 Gce Model Questions Vol1 Agricultural Science examination.

Gce Model Questions Vol1 2023 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 5 GCE_MODEL_QUESTIONS_VOL1 • 2023 • AGRICULTURAL_SCIENCE • objective

A farmer cultivates \(10\) ha of wheat. Variable costs are N\(45{,}000\) per ha and fixed costs are N\(12{,}000\) per ha. Expected yield is \(4.5\) tonnes per ha. The current market price is N\(16{,}000\) per tonne. The government offers a subsidy of N\(20\) per tonne on the first \(30\) tonnes produced.\n\n(a) Calculate the farmer's profit with and without the subsidy.\n(b) Determine the minimum market price per tonne required to achieve a profit of at least N\(150{,}000\) after the subsidy is applied.

Answer Options

A. Profit without subsidy: N140,000; profit with subsidy: N140,600; minimum price: N15,500 per tonne
Correct Answer B. Profit without subsidy: N150,000; profit with subsidy: N150,600; minimum price: N15,988 per tonne
C. Profit without subsidy: N155,000; profit with subsidy: N155,600; minimum price: N15,800 per tonne
D. Profit without subsidy: N150,000; profit with subsidy: N151,200; minimum price: N16,200 per tonne
Correct Answer
B
Correct Option:
Profit without subsidy: N150,000; profit with subsidy: N150,600; minimum price: N15,988 per tonne

About This Question

This is Gce Model Questions Vol1 2023 Agricultural Science Question 5. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Agricultural Science examination.

Difficulty level: Hard .

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