Neco 2017 Economics Question 35
Practice objective / multiple choice question 35 from the 2017 Neco Economics examination.
A farmer cultivates maize on \(5\) hectares. Without fertilizer, the expected yield is \(2.5\) tonnes per hectare. A new fertilizer raises yield by \(40\%\) per hectare but costs \(45{,}000\) Naira per hectare. The market price of maize is \(120{,}000\) Naira per tonne. The government subsidises \(60\%\) of the fertilizer cost. Assuming all other costs are negligible, determine the increase in the farmer's net profit (in Naira) from using the fertilizer with the subsidy compared to not using it.
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About This Question
This is Neco 2017 Economics Question 35. It is one of the objective questions from the 2017 Neco Economics examination.
Difficulty level: Hard .
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