Post Utme Babcock University 2017 Commerce Question 12

Practice objective / multiple choice question 12 from the 2017 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2017 Commerce Objective / Multiple Choice
Question 12 POST_UTME_BABCOCK_UNIVERSITY • 2017 • COMMERCE • objective

A firm is considering two different production processes. Process A requires an initial investment of ₦100,000 and has a fixed cost of ₦20,000 per unit. Process B requires an initial investment of ₦150,000 and has a fixed cost of ₦15,000 per unit. If the firm expects to produce 10,000 units per year, 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 Babcock University 2017 Commerce Question 12. It is one of the objective questions from the 2017 Post Utme Babcock University Commerce examination.

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