AEC 301: BASIC FARM MANAGEMENT AND PRODUCTION ECONOMICS PAST QUESTION

UNIVERSITY OF NIGERIA NSUKKA

FACULTY OF AGRICULTURE

DEPARTMENT OF AGRICULTURAL ECONOMICS   2011/2012 SESSION

AEC 301: BASIC FARM MANAGEMENT AND PRODUCTION ECONOMICS

ANSWER FIVE QUESTIONS IN ALL. ATTEMPT AT LEAST 2 QUESTIONS FROM EACH SECTION

 

SECTION A

1 (a) Given the following yield of maize at various Nitrogen levels:

Nitrogen Levels	Total Yield of Maize/Ha
1	4.9
2	13.2
3	24.3
4	37.6
5	52.5
6	68.4
7	84.7
8	100.8
9	116.1
10	130.0
11	141.9
12	151.2
13	157.3
14	159.6
15	157.5
16	150.4

1. Plot the TPP, MPP, and APP curves
2. Distinguish clearly the three stages of production

iii.          At what inp4ut level is MPP = APP?

1. At what input level is MPP = 0
2. At what input level is TPP highest?
3. Show that MPP/APP = E_p, where E_pis the elasticity of production
4. c) Show how E_pvaries in stages I, II, and III of production

2a) Determine the maximum cost combination of inputs X1 and X2 for an output level of 200 units given in the following table

THE UNIVERSITY OF NIGERIA NSUKKA

FACULTY OF AGRICULTURE

DEPARTMENT OF AGRICULTURAL ECONOMICS   2013/2014 SESSION

AEC 301: BASIC FARM MANAGEMENT AND PRODUCTION ECONOMICS

ANSWER FIVE QUESTIONS IN ALL. ATTEMPT AT LEAST 2 QUESTIONS FROM EACH SECTION

SECTION A

1. Draw the graph of the Isocost curve for the following equation: Xt = C/P_X1– P_X2/P_X1X² where X1 and X2 are two variable inputs, C is the total amount to be spent on X1 and X₂. P_X1 and P_X2 are prices of X₁ and X₂ respectively.

• Assume that C = 4,000, P_X1 = N100, P_X2 = N200
• (Hint: C/PX1 is the intercept of the isocost line on the X1 axis, while P_X2/P_X1 is the slope of the isocost line)
• Give that Y = 993.71 + 43.40P – 0.46P²for Sudan Savannah,
• Y = 1561.23 + 22.83P – 0.13P² for northern guinea Savannah

Where Y is the yield of Sorghum and P is the Phosphorus fertilizer. Find the technical optimum fields and the corresponding fertilizer level for the two zones.

2. Two products Y1 and Y2 can be produced with a given set of inputs in the following combinations:

Production Possibility when using 120 units of inputs X = 120

Y2	Y1
0	60
26	60
46	52
62	42
74	30
82	16
86	0

• Compute the marginal rate of product substitution of Y1 for Y2
• Show the production possibility curves for X = 120 and for X = 160
• List four types of enterprise relationship

SECTION B

3. What is labour? State the five characteristics of labour

4. State and explain the different classifications of capital

5. Describe the different types of agricultural land cases and their different characteristics

6. Differentiate in detail the balance sheet and income statement