Waec Model Questions Vol1 2020 Economics Question 46
Practice objective / multiple choice question 46 from the 2020 Waec Model Questions Vol1 Economics examination.
A farmer cultivates maize on 5 hectares. Variable cost per hectare is ₦120,000 and fixed cost for the farm is ₦300,000. Expected yield is 2.8 tonnes per hectare and the market price is ₦70,000 per tonne. The government pays a subsidy of ₦40,000 for every tonne produced above 12 tonnes in total. The farmer can invest an additional ₦30,000 on any hectare; each such investment raises the yield on that hectare by 0.4 tonne. The farmer wants a net profit of at least ₦200,000 after costs, investment and subsidy. What is the minimum additional investment (in whole‑hectare multiples) the farmer must make to achieve the target profit?
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About This Question
This is Waec Model Questions Vol1 2020 Economics Question 46. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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