Neco 2023 Economics Question 46
Practice objective / multiple choice question 46 from the 2023 Neco Economics examination.
An agricultural firm grows maize. Fixed cost is \(120{,}000\) ₦. The variable cost per ton is given by \(VC_{unit}=20{,}000+0.5Q\) where \(Q\) is the output in tons. The market price per ton follows the linear demand function \(P = 150{,}000 - 2{,}000Q\). The government may grant a per‑ton subsidy \(S\) (in ₦) that the farmer can accept.\n\n(a) Determine the profit‑maximising output \(Q^{*}\) without any subsidy.\n\n(b) The farmer wishes to increase output by at least 20 % relative to \(Q^{*}\) by using a subsidy. Find the minimum subsidy per ton \(S\) that will achieve this target.
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About This Question
This is Neco 2023 Economics Question 46. It is one of the objective questions from the 2023 Neco Economics examination.
Difficulty level: Hard .
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