Neco 2024 Economics Question 37
Practice objective / multiple choice question 37 from the 2024 Neco Economics examination.
A firm must ship 200 tons of goods over a distance of 150 km. It can use trucks or rail. The cost per ton for trucks is \(0.45\) (fixed) + \(0.12\) per ton‑km. The cost per ton for rail is \(0.30\) (fixed) + \(0.08\) per ton‑km. If more than 100 tons are shipped by rail, the variable rail cost per km falls by 10\%. If both modes are used, a handling surcharge of \(5{,}000\) Naira is added. Determine the allocation of tons between truck and rail that minimises total cost and state that minimum cost.
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About This Question
This is Neco 2024 Economics Question 37. It is one of the objective questions from the 2024 Neco Economics examination.
Difficulty level: Hard .
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