Neco Model Questions Vol1 2017 Agricultural Science Question 20

A farmer can cultivate two crops, X and Y, on a total of \(5\) ha. The costs and returns are:\n\n- Crop X: fixed cost ₦150 000, variable cost ₦50 000 ha\(^{-1}\), expected yield \(4\) t ha\(^{-1}\), market price \(P_X\) (₦ t\(^{-1}\)). The government gives a subsidy equal to \(10\%\) of the gross revenue from X.\n\n- Crop Y: fixed cost ₦100 000, variable cost ₦70 000 ha\(^{-1}\), expected yield \(3\) t ha\(^{-1}\), market price ₦150 000 t\(^{-1}\). No subsidy.\n\nThe farmer must allocate at least \(1\) ha to crop Y for crop‑rotation purposes. Determine the minimum market price of crop X (in ₦ per tonne) that makes it more profitable to plant the entire \(5\) ha with crop X (and \(0\) ha with Y) than to plant \(4\) ha with X and \(1\) ha with Y. Give your answer to the nearest thousand naira.