Post Utme Al Hikmah University 2025 Commerce Question 8

Practice objective / multiple choice question 8 from the 2025 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2025 Commerce Objective / Multiple Choice
Question 8 POST_UTME_AL-HIKMAH_UNIVERSITY • 2025 • COMMERCE • objective

A firm is considering two different production processes for its product. Process A requires an initial investment of ₦10 million and has a variable cost of ₦5 per unit. Process B requires an initial investment of ₦20 million and has a variable cost of ₦3 per unit. If the firm expects to produce 100,000 units, which process should it choose?

Answer Options

Correct Answer A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Al Hikmah University 2025 Commerce Question 8. It is one of the objective questions from the 2025 Post Utme Al Hikmah University Commerce examination.

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