Gce Model Questions Vol1 2025 Economics Question 26
Practice objective / multiple choice question 26 from the 2025 Gce Model Questions Vol1 Economics examination.
A farmer grows maize. Fixed costs are ₦150,000 per season. Variable cost is ₦30,000 per ton. The market price per ton follows the demand function \(P = 120{,}000 - 5Q\) where \(Q\) is total market quantity in tons. The farmer expects to produce the quantity where his marginal cost equals the market price (i.e., he is a price‑taker). The government offers a per‑ton subsidy \(S\) that is added to the farmer's revenue. The farmer wants a profit of at least ₦50,000. What is the minimum integer value of the subsidy \(S\) (in Naira per ton) that will allow the farmer to meet his profit target?
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About This Question
This is Gce Model Questions Vol1 2025 Economics Question 26. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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