Kenya has accelerated its plans for 32 major public reservoir and irrigation projects, with 12 currently under active development. In 2021, rehabilitation began on the Thiba Dam in Kirinyaga County to stabilize water supply for rice and horticultural cultivation. Additionally, the government has scaled up funding for solar-powered micro-irrigation networks across Eastern Kenya. Once fully operational, these initiatives will irrigate over 35,000 hectares of farmland, dramatically boosting productivity and efficiency by enabling farmers to secure three harvest cycles annually rather than depending on erratic seasonal rainfall.
Examine the likely effects on the profitability of Kenyan horticultural farmers of the government's increased investment in irrigation infrastructure (Extract C). Use a cost and revenue diagram to support your answer.
6 exam-style questions on Edexcel A A Level Economics 3.3.4 Normal profits, supernormal profits and losses. Each one has a worked solution and a mark scheme showing where the marks go.