Post Utme Mountain Top University 2023 Commerce Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2023 Commerce Objective / Multiple Choice
Question 16 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2023 • COMMERCE • objective

A company specializing in the production of solar panels has decided to diversify into the production of wind turbines. Analyze the implications of this decision on the company's production costs, revenue, and market share.

Answer Options

Correct Answer A. The company's production costs will increase due to the need to invest in new equipment and training.
B. The company's revenue will increase due to the growing demand for renewable energy sources.
C. The company's market share will decrease due to increased competition from established wind turbine manufacturers.
D. The company's production costs will decrease due to economies of scale and the sharing of resources.
Correct Answer
A
Correct Option:
The company's production costs will increase due to the need to invest in new equipment and training.

About This Question

This is Post Utme Mountain Top University 2023 Commerce Question 16. It is one of the objective questions from the 2023 Post Utme Mountain Top University Commerce examination.

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