Neco 2022 Economics Question 24

Practice objective / multiple choice question 24 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Hard Difficulty
Question 24 NECO • 2022 • ECONOMICS • objective

A farmer needs to transport 10,000 tonnes of wheat to market. Two transport modes are available:\n\n- Rail: fixed cost \(\text{₦}200,000\), variable cost \(\text{₦}30\) per tonne, maximum capacity 6,000 tonnes, and a government subsidy of \(\text{₦}5\) per tonne for the first 4,000 tonnes shipped by rail.\n- Road: fixed cost \(\text{₦}80,000\), variable cost \(\text{₦}45\) per tonne, unlimited capacity.\n\nDetermine how many tonnes should be shipped by rail and by road to minimise total transport cost, and state the minimum total cost.

Answer Options

A. Rail = 6000 tonnes, Road = 4000 tonnes; Minimum total cost = 630000
B. Rail = 5000 tonnes, Road = 5000 tonnes; Minimum total cost = 635000
Correct Answer C. Rail = 6000 tonnes, Road = 4000 tonnes; Minimum total cost = 620000
D. Rail = 4000 tonnes, Road = 6000 tonnes; Minimum total cost = 650000
Correct Answer
C
Correct Option:
Rail = 6000 tonnes, Road = 4000 tonnes; Minimum total cost = 620000

About This Question

This is Neco 2022 Economics Question 24. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Hard .

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