Post Utme Futo 2018 Economics Question 37

Practice objective / multiple choice question 37 from the 2018 Post Utme Futo Economics examination.

Post Utme Futo 2018 Economics Objective / Multiple Choice

Question 37 POST_UTME_FUTO • 2018 • ECONOMICS • objective

A firm is considering two alternative production processes. Process A requires an initial investment of ₦1,000,000 and has a variable \cost of ₦500 per unit. Process B requires an initial investment of ₦800,000 and has a variable \cost of ₦600 per unit. If the firm expects to produce 10,000 units, which process will result in lower total \cost?

Correct Answer A. Process A

B. Process B

C. Both processes will result in the same total \cost

D. Neither process will result in lower total \cost

Correct Answer

Correct Option:

Process A

This is Post Utme Futo 2018 Economics Question 37. It is one of the objective questions from the 2018 Post Utme Futo Economics examination.

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