A high rent on land will affect the cost of producing maize
ECONOMICS
JAMB 2008
A high rent on land will affect the cost of producing maize
- A. at the early stage of production
- B. negatively
- C. at the later stage of population
- D. positively
Correct Answer: B. negatively
Explanation
A high rent on land will affect the cost of producing maize negatively. This is because the producers or farmers who farm on the land will have to increase the prices for the maize in order to break even. This will affect the demand for the maize and the firm as well, as regards the law of demand. Apart from leading to an increase in the general cost of production, it is not every farmer or firm that may be able to afford the land to cultivate the maize.
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