Post Utme Mountain Top University 2019 Commerce Question 31

Practice objective / multiple choice question 31 from the 2019 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2019 Commerce Objective / Multiple Choice
Question 31 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • COMMERCE • objective

A company is considering two different production methods for its new product. Method A involves a high initial investment but low ongoing costs, while Method B involves low initial investment but high ongoing costs. If the company expects to produce 10,000 units in the first year and 20,000 units in the second year, which production method should it choose if it wants to minimize its total cost?

Answer Options

Correct Answer A. Method A
B. Method B
C. Method C
D. Method D
Correct Answer
A
Correct Option:
Method A

About This Question

This is Post Utme Mountain Top University 2019 Commerce Question 31. It is one of the objective questions from the 2019 Post Utme Mountain Top University Commerce examination.

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