Post Utme Babcock University 2017 Economics Question 27

Practice objective / multiple choice question 27 from the 2017 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2017 Economics Objective / Multiple Choice
Question 27 POST_UTME_BABCOCK_UNIVERSITY • 2017 • ECONOMICS • objective

A firm is considering two production techno\logies: one that requires an initial investment of ₦100 million and produces 100 units of output per year, and another that requires an initial investment of ₦150 million and produces 120 units of output per year. If the firm's objective is to maximize profits, which techno\logy should it choose?

Answer Options

A. The first techno\logy, because it has a lower initial investment.
B. The second techno\logy, because it produces more output per year.
C. The first techno\logy, because it has a higher profit margin.
Correct Answer D. The second techno\logy, because it has a lower \cost per unit of output.
Correct Answer
D
Correct Option:
The second techno\logy, because it has a lower \cost per unit of output.

About This Question

This is Post Utme Babcock University 2017 Economics Question 27. It is one of the objective questions from the 2017 Post Utme Babcock University Economics examination.

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