Post Utme Babcock University 2019 Commerce Question 22

Practice objective / multiple choice question 22 from the 2019 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2019 Commerce Objective / Multiple Choice
Question 22 POST_UTME_BABCOCK_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering two different production processes. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the firm produces 10,000 units, which process is more profitable?

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 2019 Commerce Question 22. It is one of the objective questions from the 2019 Post Utme Babcock University Commerce examination.

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