Post Utme Lasu 2022 Commerce Question 28

Practice objective / multiple choice question 28 from the 2022 Post Utme Lasu Commerce examination.

Post Utme Lasu 2022 Commerce Objective / Multiple Choice
Question 28 POST_UTME_LASU • 2022 • COMMERCE • objective

A firm is considering two different production processes for its product. Process A requires an initial investment of ₦10 million, but has a higher production capacity and lower labor costs. Process B requires an initial investment of ₦5 million, but has a lower production capacity and higher labor costs. Which process should the firm choose?

Answer Options

Correct Answer A. Process A, due to its higher production capacity and lower labor costs.
B. Process B, due to its lower initial investment.
C. Process C, which has not been mentioned.
D. The firm should choose the process that maximizes its profits.
Correct Answer
A
Correct Option:
Process A, due to its higher production capacity and lower labor costs.

About This Question

This is Post Utme Lasu 2022 Commerce Question 28. It is one of the objective questions from the 2022 Post Utme Lasu Commerce examination.

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