Post Utme Christopher University 2018 Economics Question 5

Practice objective / multiple choice question 5 from the 2018 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2018 Economics Objective / Multiple Choice
Question 5 POST_UTME_CHRISTOPHER_UNIVERSITY • 2018 • ECONOMICS • objective

A firm is considering the production of a new product, and the firm's management is trying to decide whether to invest in the production of the new product. U\sing the concept of opportunity \cost, explain why the firm's management might choose not to invest in the production of the new product.

Answer Options

Correct Answer A. The firm's management might choose not to invest in the production of the new product because the opportunity \cost of producing the new product is too high.
B. The firm's management might choose not to invest in the production of the new product because the opportunity \cost of producing the new product is too low.
C. The firm's management might choose not to invest in the production of the new product because the firm does not have the necessary resources to produce the new product.
D. The firm's management might choose not to invest in the production of the new product because the firm does not see a profit in producing the new product.
Correct Answer
A
Correct Option:
The firm's management might choose not to invest in the production of the new product because the opportunity \cost of producing the new product is too high.

About This Question

This is Post Utme Christopher University 2018 Economics Question 5. It is one of the objective questions from the 2018 Post Utme Christopher University Economics examination.

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