Neco 2019 Economics Question 14
Practice objective / multiple choice question 14 from the 2019 Neco Economics examination.
A firm can transport its goods by truck or by rail. Truck transport incurs a fixed monthly cost of \(\text{₦}100,000\) and a variable cost of \(\text{₦}250\) per ton. Rail transport has a fixed monthly cost of \(\text{₦}250,000\) and a variable cost of \(\text{₦}500\) per ton, but if the monthly shipment exceeds \(800\) tons the rail variable cost is reduced by \(60\%\) (i.e., to \(40\%\) of the original). What is the minimum monthly shipment (in tons) at which rail transport becomes cheaper than truck transport?
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About This Question
This is Neco 2019 Economics Question 14. It is one of the objective questions from the 2019 Neco Economics examination.
Difficulty level: Hard .
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