Post Utme Rhema University 2017 Commerce Question 8

Practice objective / multiple choice question 8 from the 2017 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2017 Commerce Objective / Multiple Choice
Question 8 POST_UTME_RHEMA_UNIVERSITY • 2017 • COMMERCE • objective

A firm is considering the use of a new production technology that will reduce its production costs by 20%. The new technology will also increase its production capacity by 15%. What is the effect of the new technology on the firm's production costs?

Answer Options

A. The production costs will increase by 10%
Correct Answer B. The production costs will decrease by 10%
C. The production costs will remain the same
D. The production costs will increase by 20%
Correct Answer
B
Correct Option:
The production costs will decrease by 10%

About This Question

This is Post Utme Rhema University 2017 Commerce Question 8. It is one of the objective questions from the 2017 Post Utme Rhema University Commerce examination.

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