Neco Model Questions Vol1 2018 Geography Question 2
Practice objective / multiple choice question 2 from the 2018 Neco Model Questions Vol1 Geography examination.
A farmer cultivates maize on \(2\) ha. Under normal rainfall the expected yield is \(3.5\) t ha\(^{-1}\). The market price is ₦\(2{,}500\) per tonne and the base fertilizer cost is ₦\(5{,}000\) per ha. For each additional \(0.1\) t ha\(^{-1}\) of yield, the market price rises by ₦\(150\) per tonne and the fertilizer cost rises by ₦\(200\) per ha. Fixed costs (land, labour) amount to ₦\(5{,}000\). The farmer can install an irrigation system that guarantees an extra \(0.3\) t ha\(^{-1}\) yield at a total cost of ₦\(12{,}000\). Should the farmer adopt the irrigation system? Calculate the difference in profit (in naira) between adopting and not adopting the system.
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About This Question
This is Neco Model Questions Vol1 2018 Geography Question 2. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Geography examination.
Difficulty level: Hard .
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