Neco Model Questions Vol1 2022 Geography Question 27

Practice objective / multiple choice question 27 from the 2022 Neco Model Questions Vol1 Geography examination.

Neco Model Questions Vol1 2022 Geography Objective / Multiple Choice Hard Difficulty
Question 27 NECO_MODEL_QUESTIONS_VOL1 • 2022 • GEOGRAPHY • objective

A textile factory plans to locate along a straight line up to 200 km from a cotton market. Fixed monthly cost is ₦500,000 and variable cost is ₦150 per unit. The market price is ₦250 per unit and the factory will produce 5,000 units each month. Transport cost per unit is ₦0.5 per km for the first 100 km and ₦0.3 per km beyond 100 km. If the factory is situated more than 150 km from the market it receives a monthly subsidy of ₦20,000. Determine the distance from the market that maximises the factory's monthly profit and state the maximum profit.

Answer Options

Correct Answer A. 0 km (maximum profit ₦0)
B. 50 km (maximum profit ₦-25,000)
C. 120 km (maximum profit ₦5,000)
D. 180 km (maximum profit ₦-10,000)
Correct Answer
A
Correct Option:
0 km (maximum profit ₦0)

About This Question

This is Neco Model Questions Vol1 2022 Geography Question 27. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Geography examination.

Difficulty level: Hard .

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