Post Utme Lead City University 2019 Commerce Question 33

Practice objective / multiple choice question 33 from the 2019 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2019 Commerce Objective / Multiple Choice
Question 33 POST_UTME_LEAD_CITY_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering a new production process that will reduce its costs by 15%. However, the new process will also increase its variable costs by 20%. What will be the effect on the firm's profit?

Answer Options

A. Profit will increase by 5%
Correct Answer B. Profit will decrease by 5%
C. Profit will remain unchanged
D. Profit will increase by 10%
Correct Answer
B
Correct Option:
Profit will decrease by 5%

About This Question

This is Post Utme Lead City University 2019 Commerce Question 33. It is one of the objective questions from the 2019 Post Utme Lead City University Commerce examination.

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