Post Utme Caleb University 2023 Economics Question 40

Practice objective / multiple choice question 40 from the 2023 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2023 Economics Objective / Multiple Choice
Question 40 POST_UTME_CALEB_UNIVERSITY • 2023 • ECONOMICS • objective

A firm is considering two different production processes to produce a product. The first process has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. The second process has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, determine the profit-maximizing quantity for each process.

Answer Options

Correct Answer A. Process 1: 2000 units, Process 2: 3000 units
B. Process 1: 3000 units, Process 2: 2000 units
C. Process 1: 4000 units, Process 2: 4000 units
D. Process 1: 5000 units, Process 2: 5000 units
Correct Answer
A
Correct Option:
Process 1: 2000 units, Process 2: 3000 units

About This Question

This is Post Utme Caleb University 2023 Economics Question 40. It is one of the objective questions from the 2023 Post Utme Caleb University Economics examination.

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