Gce Model Questions Vol1 2024 Economics Question 50

Practice objective / multiple choice question 50 from the 2024 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 50 GCE_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

A farmer expects to harvest 200 tons of maize. Variable cost is \(\text{₦}150\) per ton and fixed cost is \(\text{₦}20{,}000\) per season. The government price‑support scheme pays a subsidy of \(\text{₦}30\) per ton if the market price falls below \(\text{₦}250\) per ton.\ (a) What is the lowest market price at which the farmer will break even (i.e., total revenue + subsidy = total cost)?\ (b) If the market price is \(\text{₦}210\) per ton, calculate the farmer's profit or loss.

Answer Options

A. -2500
Correct Answer B. -2000
C. -1000
D. -1500
Correct Answer
B
Correct Option:
-2000

About This Question

This is Gce Model Questions Vol1 2024 Economics Question 50. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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