Neco 2019 Economics Question 31

Practice objective / multiple choice question 31 from the 2019 Neco Economics examination.

Neco 2019 Economics Objective / Multiple Choice Hard Difficulty
Question 31 NECO • 2019 • ECONOMICS • objective

An agricultural economist is evaluating a farmer who has 10 hectares of land to allocate between wheat and maize. The wheat yield is 3 tonnes per hectare and the market price is \(\text{₦}200\) per tonne. The maize yield is 2.5 tonnes per hectare and its market price is \(\text{₦}180\) per tonne. Variable cost per hectare is \(\text{₦}200\) for wheat and \(\text{₦}180\) for maize. Fixed costs amount to \(\text{₦}2000\). The farmer must allocate whole hectares. Determine the allocation of hectares to wheat and to maize that maximizes total profit and compute the maximum profit (in ₦).

Answer Options

Correct Answer A. Allocate 10 ha to wheat and 0 ha to maize; maximum profit = ₦2000
B. Allocate 0 ha to wheat and 10 ha to maize; maximum profit = ₦700
C. Allocate 9 ha to wheat and 1 ha to maize; maximum profit = ₦1870
D. Allocate 5 ha to wheat and 5 ha to maize; maximum profit = ₦1350
Correct Answer
A
Correct Option:
Allocate 10 ha to wheat and 0 ha to maize; maximum profit = ₦2000

About This Question

This is Neco 2019 Economics Question 31. It is one of the objective questions from the 2019 Neco Economics examination.

Difficulty level: Hard .

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