Neco 2017 Agricultural Science Question 17
Practice objective / multiple choice question 17 from the 2017 Neco Agricultural Science examination.
An agricultural economist studies the market for maize. The market demand is given by \( Q = 500 - 5P \) (kg), where \( P \) is the price per kilogram in naira. The farmer's variable cost of production is N10 per kilogram and the fixed cost is N5,000.\n\n(a) Determine the price that maximises profit and compute the maximum profit.\n\n(b) Suppose the government introduces a per‑kilogram tax of \( t \) naira, which adds to the variable cost. Assuming the farmer again chooses the profit‑maximising price, find the value of \( t \) that reduces the maximum profit by exactly 25 % compared with the situation in part (a). Give your answer for \( t \) to two decimal places.
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About This Question
This is Neco 2017 Agricultural Science Question 17. It is one of the objective questions from the 2017 Neco Agricultural Science examination.
Difficulty level: Hard .
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