Post Utme Pan Atlantic University 2019 Commerce Question 38

Practice objective / multiple choice question 38 from the 2019 Post Utme Pan Atlantic University Commerce examination.

Post Utme Pan Atlantic University 2019 Commerce Objective / Multiple Choice
Question 38 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering two different production processes for producing a certain product. Process A requires an initial investment of ₦10,000 and a variable cost of ₦5 per unit produced. Process B requires an initial investment of ₦20,000 and a variable cost of ₦3 per unit produced. 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 lower total cost
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Pan Atlantic University 2019 Commerce Question 38. It is one of the objective questions from the 2019 Post Utme Pan Atlantic University Commerce examination.

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