Neco 2020 Economics Question 42

Practice objective / multiple choice question 42 from the 2020 Neco Economics examination.

Neco 2020 Economics Objective / Multiple Choice Hard Difficulty
Question 42 NECO • 2020 • ECONOMICS • objective

A farmer has 10 hectares of land to allocate between maize and soybeans. Maize yields 2.5 tonnes per hectare and sells for \(\text{₦}120\) per kg; soybeans yield 1.8 tonnes per hectare and sell for \(\text{₦}200\) per kg. Variable cost per hectare is \(\text{₦}30,000\) for maize and \(\text{₦}45,000\) for soybeans. Fixed cost is \(\text{₦}150,000\). Each hectare of maize requires 8 labor hours and each hectare of soybeans requires 12 labor hours; total labor available is 96 hours. At least 2 hectares must be planted to soybeans. Determine how many hectares of each crop the farmer should plant to maximise profit and state the maximum profit.

Answer Options

A. Plant 8 hectares of maize and 2 hectares of soybeans; maximum profit = \(\text{₦}2,640,000\)
Correct Answer B. Plant 6 hectares of maize and 4 hectares of soybeans; maximum profit = \(\text{₦}2,730,000\)
C. Plant 7 hectares of maize and 3 hectares of soybeans; maximum profit = \(\text{₦}2,685,000\)
D. Plant 5 hectares of maize and 5 hectares of soybeans; maximum profit = \(\text{₦}2,775,000\)
Correct Answer
B
Correct Option:
Plant 6 hectares of maize and 4 hectares of soybeans; maximum profit = \(\text{₦}2,730,000\)

About This Question

This is Neco 2020 Economics Question 42. It is one of the objective questions from the 2020 Neco Economics examination.

Difficulty level: Hard .

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