Neco 2024 Agricultural Science Question 11

Practice objective / multiple choice question 11 from the 2024 Neco Agricultural Science examination.

Neco 2024 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 11 NECO • 2024 • AGRICULTURAL_SCIENCE • objective

A farmer plans to produce a cash crop. The fixed cost of production is ₦200,000. The total variable cost (in ₦) for producing \(Q\) thousand kilograms of the crop is known to be ₦1,200,000 when \(Q = 10\) and ₦1,800,000 when \(Q = 20\). The market price per kilogram (in ₦) follows a linear demand relationship: when \(Q = 10\) the price is ₦150 per kg and when \(Q = 30\) the price is ₦90 per kg. Assuming the farmer sells all output, determine the quantity \(Q\) (in thousand kilograms) that maximizes profit and calculate the maximum profit (in ₦).

Answer Options

A. Q = 10 (thousand kg); Maximum profit = ₦200,000
B. Q = 15 (thousand kg); Maximum profit = ₦300,000
Correct Answer C. Q = 20 (thousand kg); Maximum profit = ₦400,000
D. Q = 25 (thousand kg); Maximum profit = ₦350,000
Correct Answer
C
Correct Option:
Q = 20 (thousand kg); Maximum profit = ₦400,000

About This Question

This is Neco 2024 Agricultural Science Question 11. It is one of the objective questions from the 2024 Neco Agricultural Science examination.

Difficulty level: Hard .

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