Post Utme Aaua 2017 Commerce Question 39

Practice objective / multiple choice question 39 from the 2017 Post Utme Aaua Commerce examination.

Post Utme Aaua 2017 Commerce Objective / Multiple Choice
Question 39 POST_UTME_AAUA • 2017 • COMMERCE • objective

A firm is considering investing in a new production technology that will increase its productivity by 20%. However, the firm is concerned about the high initial investment required to implement the new technology. What should the firm do?

Answer Options

Correct Answer A. Invest in the new technology as it will increase productivity and lead to higher profits
B. Do not invest in the new technology as the high initial investment is not justified
C. Invest in the new technology but only partially, to test its effectiveness
D. Invest in the new technology but only if the government provides a subsidy to cover part of the initial investment
Correct Answer
A
Correct Option:
Invest in the new technology as it will increase productivity and lead to higher profits

About This Question

This is Post Utme Aaua 2017 Commerce Question 39. It is one of the objective questions from the 2017 Post Utme Aaua Commerce examination.

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