Neco 2019 Agricultural Science Question 20

Practice objective / multiple choice question 20 from the 2019 Neco Agricultural Science examination.

Neco 2019 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 20 NECO • 2019 • AGRICULTURAL_SCIENCE • objective

The market price (₦ per ton) for a cash crop is given by the linear demand function \(P = 200 - 0.5 Q\), where \(Q\) is the quantity produced (tons). The farmer's total cost function is \(C(Q) = 20{,}000 + 30 Q + 0.1 Q^{2}\). An alternative technology reduces the variable cost coefficient from 30 to 25 but requires a fixed investment of \(\text{₦}5{,}000\). Should the farmer adopt the technology to maximize profit? Compute the profit and the profit‑maximising output quantity with and without the technology.

Answer Options

A. Do not adopt the technology. Without it: optimal output ≈ 138 t, profit ≈ ‑₦9 000. With it: optimal output ≈ 144 t, profit ≈ ‑₦13 000.
B. Adopt the technology. Without it: optimal output ≈ 142 t, profit ≈ ‑₦7 500. With it: optimal output ≈ 146 t, profit ≈ ‑₦11 800.
C. Adopt the technology. Without it: optimal output ≈ 150 t, profit ≈ ‑₦6 500. With it: optimal output ≈ 155 t, profit ≈ ‑₦10 000.
Correct Answer D. Do not adopt the technology. Without it: optimal output ≈ 142 t, profit ≈ ‑₦7 958. With it: optimal output ≈ 146 t, profit ≈ ‑₦12 233.
Correct Answer
D
Correct Option:
Do not adopt the technology. Without it: optimal output ≈ 142 t, profit ≈ ‑₦7 958. With it: optimal output ≈ 146 t, profit ≈ ‑₦12 233.

About This Question

This is Neco 2019 Agricultural Science Question 20. It is one of the objective questions from the 2019 Neco Agricultural Science examination.

Difficulty level: Hard .

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