Neco Model Questions Vol1 2023 Economics Question 7
Practice objective / multiple choice question 7 from the 2023 Neco Model Questions Vol1 Economics examination.
Two transport operators serve the same route. Operator A incurs a fixed cost of \(\text{₦}80,000\) per trip and a variable cost of \(\text{₦}25\) per passenger‑km. Operator B incurs a fixed cost of \(\text{₦}20,000\) per trip and a variable cost of \(\text{₦}35\) per passenger‑km for the first 100 km per passenger; for any distance beyond 100 km the variable cost falls to \(\text{₦}20\) per passenger‑km. Each bus carries 40 passengers. Determine the distance (in km) at which the total cost per passenger for Operator B equals that of Operator A.
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About This Question
This is Neco Model Questions Vol1 2023 Economics Question 7. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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