Neco Model Questions Vol1 2024 Economics Question 6

A farmer has 10 hectares of land. Baseline yield is 1.5 tonnes per hectare and the market price of the crop is \(\mathrm{N}1500\) per tonne. He can use fertilizer A costing \(\mathrm{N}200\) per kilogram, which increases yield by 20 % and requires 2 kg per hectare. Fertilizer B costs \(\mathrm{N}350\) per kilogram, increases yield by 35 % and also requires 2 kg per hectare. The total amount he can spend on fertilizer is limited to \(\mathrm{N}5000\). He may allocate fertilizer A to some hectares, fertilizer B to others, and leave any remaining hectares unfertilised. Determine how many hectares should receive fertilizer A, how many should receive fertilizer B, and the maximum total profit he can obtain.