Post Utme Mountain Top University 2018 Economics Question 3

Practice objective / multiple choice question 3 from the 2018 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2018 Economics Objective / Multiple Choice
Question 3 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2018 • ECONOMICS • objective

A firm is considering two different production processes: one that uses a high fixed \cost and low variable \cost, and another that uses a low fixed \cost and high variable \cost. Which production process will result in the lowest average \cost?

Answer Options

A. The production process with the high fixed \cost and low variable \cost.
Correct Answer B. The production process with the low fixed \cost and high variable \cost.
C. Both production processes will result in the same average \cost.
D. The production process with the high fixed \cost and low variable \cost will result in the highest average \cost.
Correct Answer
B
Correct Option:
The production process with the low fixed \cost and high variable \cost.

About This Question

This is Post Utme Mountain Top University 2018 Economics Question 3. It is one of the objective questions from the 2018 Post Utme Mountain Top University Economics examination.

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