Post Utme Oau 2022 Economics Question 19

Practice objective / multiple choice question 19 from the 2022 Post Utme Oau Economics examination.

Post Utme Oau 2022 Economics Objective / Multiple Choice
Question 19 POST_UTME_OAU • 2022 • ECONOMICS • objective

A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit. If the firm produces 10,000 units of the good, what is the elasticity of demand for each process?

Answer Options

Correct Answer A. Inelastic for Process A and Elastic for Process B
B. Elastic for Process A and Inelastic for Process B
C. Unit elastic for Process A and Unit elastic for Process B
D. None of the above
Correct Answer
A
Correct Option:
Inelastic for Process A and Elastic for Process B

About This Question

This is Post Utme Oau 2022 Economics Question 19. It is one of the objective questions from the 2022 Post Utme Oau Economics examination.

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