Post Utme Abu 2024 Economics Question 24

Practice objective / multiple choice question 24 from the 2024 Post Utme Abu Economics examination.

Post Utme Abu 2024 Economics Objective / Multiple Choice
Question 24 POST_UTME_ABU • 2024 • ECONOMICS • objective

A firm is considering two different pricing strategies for a product. Strategy A involves setting a high price for the product to maximize profit, while Strategy B involves setting a low price for the product to maximize market share. What is the opportunity \cost of choo\sing Strategy A over Strategy B?

Answer Options

Correct Answer A. The opportunity \cost is the reduction in market share due to the high price.
B. The opportunity \cost is the reduction in profit due to the low price.
C. The opportunity \cost is the increase in the number of customers who are unable to afford the product.
D. The opportunity \cost is the increase in the number of customers who are willing to pay the high price.
Correct Answer
A
Correct Option:
The opportunity \cost is the reduction in market share due to the high price.

About This Question

This is Post Utme Abu 2024 Economics Question 24. It is one of the objective questions from the 2024 Post Utme Abu Economics examination.

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