Neco Model Questions Vol1 2019 Agricultural Science Question 34
Practice objective / multiple choice question 34 from the 2019 Neco Model Questions Vol1 Agricultural Science examination.
A farmer cultivates 5 ha of maize. Variable cost is \(\N150,000\) per ha and fixed cost is \(\N200,000\). Expected yield is 4 tonnes per ha. The market price is \(\N45,000\) per tonne. The government offers a price‑support scheme: if the market price falls below \(\N40,000\) per tonne, a subsidy of \(\N5,000\) per tonne is paid. The farmer may store up to 10% of the total harvest for one year; stored grain gains an 8% price increase but incurs a storage cost of \(\N2,000\) per tonne per year. The farmer must sell at least 90% of the harvest immediately. Determine the optimal amount of grain (in tonnes) to store and the maximum profit (in Naira) the farmer can achieve.
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About This Question
This is Neco Model Questions Vol1 2019 Agricultural Science Question 34. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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