Neco Model Questions Vol1 2024 Economics Question 40
Practice objective / multiple choice question 40 from the 2024 Neco Model Questions Vol1 Economics examination.
A shipping company can transport goods by road or by rail. For a shipment of 800 tons, the road option incurs a fixed cost of ₦20 000 plus a variable cost of ₦0.18 per ton‑km. The rail option incurs a fixed cost of ₦50 000 plus a variable cost of ₦0.09 per ton‑km. At what distance (in kilometres, rounded to the nearest kilometre) will the total cost of the two options be equal? Indicate also which mode is cheaper for distances shorter than this break‑even point.
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About This Question
This is Neco Model Questions Vol1 2024 Economics Question 40. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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