Neco Model Questions Vol1 2019 Economics Question 38

Practice objective / multiple choice question 38 from the 2019 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2019 Economics Objective / Multiple Choice Hard Difficulty
Question 38 NECO_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

A farmer has 10 hectares of land to allocate between maize and soybeans. Fixed costs are \(\N{150,000}\). Variable cost per hectare is \(\N{30,000}\) for maize and \(\N{20,000}\) for soybeans. Expected yields are 2.5 tonnes/ha for maize (price \(\N{120,000}\) per tonne) and 1.8 tonnes/ha for soybeans (price \(\N{150,000}\) per tonne). Due to crop‑rotation rules the farmer must plant at least 2 hectares of soybeans. Determine the optimal hectare allocation that maximises profit and state the maximum profit.

Answer Options

Correct Answer A. 8 ha maize, 2 ha soybeans; Maximum profit = \N{2,510,000}
B. 7 ha maize, 3 ha soybeans; Maximum profit = \N{2,430,000}
C. 6 ha maize, 4 ha soybeans; Maximum profit = \N{2,380,000}
D. 9 ha maize, 1 ha soybeans; Maximum profit = \N{2,560,000}
Correct Answer
A
Correct Option:
8 ha maize, 2 ha soybeans; Maximum profit = \N{2,510,000}

About This Question

This is Neco Model Questions Vol1 2019 Economics Question 38. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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