Post Utme Futo 2020 Commerce Question 23

Practice objective / multiple choice question 23 from the 2020 Post Utme Futo Commerce examination.

Post Utme Futo 2020 Commerce Objective / Multiple Choice

Question 23 POST_UTME_FUTO • 2020 • COMMERCE • objective

A firm is considering expanding its production capacity to meet increasing demand. However, the expansion would require a significant investment in new equipment and labor. What is the opportunity cost of this expansion?

A. The opportunity cost is the cost of producing one more unit of the good.

Correct Answer B. The opportunity cost is the cost of producing the entire new capacity.

C. The opportunity cost is the cost of producing the entire new capacity plus the cost of producing one more unit.

D. The opportunity cost is the cost of producing the entire new capacity minus the cost of producing one more unit.

Correct Answer

Correct Option:

The opportunity cost is the cost of producing the entire new capacity.

This is Post Utme Futo 2020 Commerce Question 23. It is one of the objective questions from the 2020 Post Utme Futo Commerce examination.

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