Neco Model Questions Vol1 2018 Agricultural Science Question 16
Practice objective / multiple choice question 16 from the 2018 Neco Model Questions Vol1 Agricultural Science examination.
A farmer cultivates 50 ha of maize. Fixed costs are ₦150,000. The variable cost per hectare depends on the amount of fertilizer applied (F kg per hectare, in multiples of 50 kg). The cost per hectare is ₦20,000 when no fertilizer is used and decreases by ₦2,000 for each additional 50 kg ha⁻¹ of fertilizer. The expected yield per hectare (in tonnes) is given by \( Y(F) = 2 + 0.05F - 0.0005F^{2} \). The market price of maize is ₦30,000 per tonne, but if total production from the 50 ha exceeds 100 tonnes, the price falls by 5 % because of market saturation. Determine the amount of fertilizer (in kg ha⁻¹) that maximizes the farmer's profit and state the maximum profit (in Naira).
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About This Question
This is Neco Model Questions Vol1 2018 Agricultural Science Question 16. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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