Post Utme Joseph Ayo Babalola University 2023 Economics Question 2

Practice objective / multiple choice question 2 from the 2023 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2023 Economics Objective / Multiple Choice
Question 2 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2023 • ECONOMICS • objective

A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦10 million and has a variable \cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable \cost of ₦3 per unit. If the firm produces 10,000 units, what is the total \cost of production for each process?

Answer Options

Correct Answer A. Process A: ₦52.5 million, Process B: ₦48.5 million
B. Process A: ₦57.5 million, Process B: ₦53.5 million
C. Process A: ₦42.5 million, Process B: ₦38.5 million
D. Process A: ₦62.5 million, Process B: ₦58.5 million
Correct Answer
A
Correct Option:
Process A: ₦52.5 million, Process B: ₦48.5 million

About This Question

This is Post Utme Joseph Ayo Babalola University 2023 Economics Question 2. It is one of the objective questions from the 2023 Post Utme Joseph Ayo Babalola University Economics examination.

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