Post Utme Afe Babalola University 2025 Commerce Question 5

Practice objective / multiple choice question 5 from the 2025 Post Utme Afe Babalola University Commerce examination.

Post Utme Afe Babalola University 2025 Commerce Objective / Multiple Choice
Question 5 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2025 • COMMERCE • objective

A firm produces a product with a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. If the firm sells 1,000 units of the product, what is the likely effect on the firm's profit?

Answer Options

Correct Answer A. The profit increases by ₦50,000.
B. The profit decreases by ₦50,000.
C. The profit remains unchanged.
D. The profit increases by ₦100,000.
Correct Answer
A
Correct Option:
The profit increases by ₦50,000.

About This Question

This is Post Utme Afe Babalola University 2025 Commerce Question 5. It is one of the objective questions from the 2025 Post Utme Afe Babalola University Commerce examination.

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