Post Utme Coal City University 2024 Commerce Question 39

Practice objective / multiple choice question 39 from the 2024 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2024 Commerce Objective / Multiple Choice
Question 39 POST_UTME_COAL_CITY_UNIVERSITY • 2024 • COMMERCE • objective

A firm is considering two different production processes. Process A has a higher fixed cost but a lower variable cost per unit. Process B has a lower fixed cost but a higher variable cost per unit. Which of the following is the best way to determine the most cost-effective production process?

Answer Options

A. By comparing the fixed costs alone.
B. By comparing the variable costs alone.
C. By comparing the total costs alone.
Correct Answer D. By comparing the marginal costs alone.
Correct Answer
D
Correct Option:
By comparing the marginal costs alone.

About This Question

This is Post Utme Coal City University 2024 Commerce Question 39. It is one of the objective questions from the 2024 Post Utme Coal City University Commerce examination.

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