Neco 2020 Agricultural Science Question 31

Practice objective / multiple choice question 31 from the 2020 Neco Agricultural Science examination.

Neco 2020 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 31 NECO • 2020 • AGRICULTURAL_SCIENCE • objective

A farmer grows maize. Fixed costs are N500,000 and the variable cost is N1,200 per ton. The market price per ton depends on the quantity sold according to \(P = 6000 - 20Q\) where \(Q\) is the quantity in tons.\n\n(a) Determine the quantity \(Q\) that maximises profit and compute the maximum profit.\n\n(b) If a government subsidy of N30 per ton is introduced, the price becomes \(P' = 6030 - 20Q\). Determine the new profit‑maximising quantity and the corresponding profit.

Answer Options

A. Maximum profit without subsidy: Q = 118 tons, profit = N186,500. With subsidy: Q = 119 tons, profit = N190,200.
B. Maximum profit without subsidy: Q = 120 tons, profit = N190,000. With subsidy: Q = 122 tons, profit = N192,500.
Correct Answer C. Maximum profit without subsidy: Q = 120 tons, profit = N188,000. With subsidy: Q = 121 tons, profit = N191,610.
D. Maximum profit without subsidy: Q = 115 tons, profit = N180,000. With subsidy: Q = 116 tons, profit = N185,000.
Correct Answer
C
Correct Option:
Maximum profit without subsidy: Q = 120 tons, profit = N188,000. With subsidy: Q = 121 tons, profit = N191,610.

About This Question

This is Neco 2020 Agricultural Science Question 31. It is one of the objective questions from the 2020 Neco Agricultural Science examination.

Difficulty level: Hard .

View More Neco 2020 Agricultural Science Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support