Post Utme Pan Atlantic University 2019 Commerce Question 40

Practice objective / multiple choice question 40 from the 2019 Post Utme Pan Atlantic University Commerce examination.

Post Utme Pan Atlantic University 2019 Commerce Objective / Multiple Choice
Question 40 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 higher total revenue?

Answer Options

Correct Answer A. Process A
B. Process B
C. Both processes will result in the same total revenue
D. Neither process will result in higher total revenue
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Pan Atlantic University 2019 Commerce Question 40. It is one of the objective questions from the 2019 Post Utme Pan Atlantic University Commerce examination.

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