Post Utme Achievers University 2020 Commerce Question 1

Practice objective / multiple choice question 1 from the 2020 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2020 Commerce Objective / Multiple Choice
Question 1 POST_UTME_ACHIEVERS_UNIVERSITY • 2020 • COMMERCE • objective

A firm is considering two production technologies: one that requires a high initial investment but results in lower production costs over time, and another that requires a low initial investment but results in higher production costs over time. Which of the following statements best describes the relationship between the two technologies?

Answer Options

A. The high initial investment technology is more capital-intensive than the low initial investment technology.
B. The low initial investment technology is more labor-intensive than the high initial investment technology.
Correct Answer C. The high initial investment technology has a higher marginal cost than the low initial investment technology.
D. The low initial investment technology has a higher fixed cost than the high initial investment technology.
Correct Answer
C
Correct Option:
The high initial investment technology has a higher marginal cost than the low initial investment technology.

About This Question

This is Post Utme Achievers University 2020 Commerce Question 1. It is one of the objective questions from the 2020 Post Utme Achievers University Commerce examination.

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