Post Utme Mountain Top University 2020 Commerce Question 7

Practice objective / multiple choice question 7 from the 2020 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2020 Commerce Objective / Multiple Choice
Question 7 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2020 • COMMERCE • objective

A firm is considering expanding its production capacity to meet increasing demand. However, this would require a significant investment in new equipment and technology. Which of the following production costs would be most affected by this expansion?

Answer Options

A. Fixed costs
Correct Answer B. Variable costs
C. Semi-variable costs
D. Sunk costs
Correct Answer
B
Correct Option:
Variable costs

About This Question

This is Post Utme Mountain Top University 2020 Commerce Question 7. It is one of the objective questions from the 2020 Post Utme Mountain Top University Commerce examination.

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