Post Utme Babcock University 2022 Economics Question 23

Practice objective / multiple choice question 23 from the 2022 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2022 Economics Objective / Multiple Choice
Question 23 POST_UTME_BABCOCK_UNIVERSITY • 2022 • ECONOMICS • objective

A firm is considering two different production processes to produce a commodity. Process A requires an initial investment of ₦100 million and has a variable \cost of ₦50 per unit. Process B requires an initial investment of ₦150 million and has a variable \cost of ₦30 per unit. If the firm produces 10,000 units of the commodity, what will be the total \cost of production for each process?

Answer Options

A. Process A: ₦500 million, Process B: ₦450 million
Correct Answer B. Process A: ₦450 million, Process B: ₦500 million
C. Process A: ₦550 million, Process B: ₦450 million
D. Process A: ₦450 million, Process B: ₦550 million
Correct Answer
B
Correct Option:
Process A: ₦450 million, Process B: ₦500 million

About This Question

This is Post Utme Babcock University 2022 Economics Question 23. It is one of the objective questions from the 2022 Post Utme Babcock University Economics examination.

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