Post Utme Coal City University 2025 Commerce Question 17

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

Post Utme Coal City University 2025 Commerce Objective / Multiple Choice
Question 17 POST_UTME_COAL_CITY_UNIVERSITY • 2025 • COMMERCE • objective

A firm is considering two production methods for its product: Method A involves a high fixed cost of ₦500,000 but a low variable cost of ₦100 per unit, while Method B has a low fixed cost of ₦200,000 but a high variable cost of ₦500 per unit. If the firm expects to sell 10,000 units of the product, which method should it choose?

Answer Options

Correct Answer A. Method A
B. Method B
C. Both methods are equally viable
D. Neither method is viable
Correct Answer
A
Correct Option:
Method A

About This Question

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

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