Post Utme Nile University 2023 Economics Question 17

Practice objective / multiple choice question 17 from the 2023 Post Utme Nile University Economics examination.

Post Utme Nile University 2023 Economics Objective / Multiple Choice
Question 17 POST_UTME_NILE_UNIVERSITY • 2023 • ECONOMICS • objective

A company is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦10 million and has a variable \cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable \cost of ₦3 per unit. U\sing the concept of \cost-benefit analysis, determine which process is more profitable if the company sells 10,000 units per year.

Answer Options

Correct Answer A. Process A is more profitable because it has a lower variable \cost.
B. Process B is more profitable because it has a lower initial investment.
C. Process A is more profitable because it has a higher selling price.
D. Process B is more profitable because it has a higher selling price.
Correct Answer
A
Correct Option:
Process A is more profitable because it has a lower variable \cost.

About This Question

This is Post Utme Nile University 2023 Economics Question 17. It is one of the objective questions from the 2023 Post Utme Nile University Economics examination.

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