Neco Model Questions Vol1 2025 Economics Question 43
Practice objective / multiple choice question 43 from the 2025 Neco Model Questions Vol1 Economics examination.
A farmer can transport produce to market using either a truck or a railway. The truck incurs a fixed cost of ₦200 per trip and a variable cost of ₦0.90 per kilometre. If the distance exceeds 200 km, the variable cost per kilometre is reduced by 10 %. The railway has a fixed loading and unloading cost of ₦300 per shipment and a variable cost of ₦0.50 per kilometre (no discount). Determine: (i) the distance at which the total cost of the two modes is the same, (ii) the range of distances for which the truck is cheaper, and (iii) the range for which the railway is cheaper. Give the break‑even distance to two decimal places.
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About This Question
This is Neco Model Questions Vol1 2025 Economics Question 43. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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