Post Utme Al Hikmah University 2025 Commerce Question 10

Practice objective / multiple choice question 10 from the 2025 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2025 Commerce Objective / Multiple Choice
Question 10 POST_UTME_AL-HIKMAH_UNIVERSITY • 2025 • COMMERCE • objective

A firm is considering two different production technologies for its product. Technology A requires an initial investment of ₦5 million and has a variable cost of ₦2 per unit. Technology B requires an initial investment of ₦10 million and has a variable cost of ₦1 per unit. If the firm expects to produce 50,000 units, which technology should it choose?

Answer Options

A. Technology A
Correct Answer B. Technology B
C. Both technologies are equally profitable
D. Neither technology is profitable
Correct Answer
B
Correct Option:
Technology B

About This Question

This is Post Utme Al Hikmah University 2025 Commerce Question 10. It is one of the objective questions from the 2025 Post Utme Al Hikmah University Commerce examination.

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