Post Utme Osustech 2024 Commerce Question 3

Practice objective / multiple choice question 3 from the 2024 Post Utme Osustech Commerce examination.

Post Utme Osustech 2024 Commerce Objective / Multiple Choice

Question 3 POST_UTME_OSUSTECH • 2024 • COMMERCE • objective

A firm is considering two different production processes for a product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the firm produces 1,000 units of the product, which process will result in lower total cost?

Answer Options

Correct Answer A. Process A

B. Process B

C. Both processes will result in the same total cost

D. Neither process will result in a lower total cost

Correct Answer

Correct Option:

Process A

About This Question

This is Post Utme Osustech 2024 Commerce Question 3. It is one of the objective questions from the 2024 Post Utme Osustech Commerce examination.

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