Post Utme Caleb University 2025 Commerce Question 17

Practice objective / multiple choice question 17 from the 2025 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2025 Commerce Objective / Multiple Choice
Question 17 POST_UTME_CALEB_UNIVERSITY • 2025 • COMMERCE • objective

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

Answer Options

A. Process A: ₦500,000; Process B: ₦350,000
Correct Answer B. Process A: ₦450,000; Process B: ₦320,000
C. Process A: ₦550,000; Process B: ₦380,000
D. Process A: ₦650,000; Process B: ₦480,000
Correct Answer
B
Correct Option:
Process A: ₦450,000; Process B: ₦320,000

About This Question

This is Post Utme Caleb University 2025 Commerce Question 17. It is one of the objective questions from the 2025 Post Utme Caleb University Commerce examination.

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