Post Utme Mountain Top University 2022 Commerce Question 23

Practice objective / multiple choice question 23 from the 2022 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2022 Commerce Objective / Multiple Choice
Question 23 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2022 • COMMERCE • objective

A firm is considering two production methods for a product: method A, which requires an initial investment of ₦10,000 and produces 100 units per hour, and method B, which requires an initial investment of ₦20,000 and produces 200 units per hour. Which of the following is a correct conclusion about the two methods?

Answer Options

A. Method A is more profitable than method B.
Correct Answer B. Method B is more profitable than method A.
C. Both methods are equally profitable.
D. The profitability of the two methods cannot be determined without further information.
Correct Answer
B
Correct Option:
Method B is more profitable than method A.

About This Question

This is Post Utme Mountain Top University 2022 Commerce Question 23. It is one of the objective questions from the 2022 Post Utme Mountain Top University Commerce examination.

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