Post Utme Rhema University 2025 Commerce Question 39

Practice objective / multiple choice question 39 from the 2025 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2025 Commerce Objective / Multiple Choice
Question 39 POST_UTME_RHEMA_UNIVERSITY • 2025 • COMMERCE • objective

A company is considering the introduction of a new product. The product has a high fixed cost of production, but a low variable cost. The company is considering two different pricing strategies: a high price and a low price. Which of the following best describes the effect of the high price strategy on the company's revenue?

Answer Options

Correct Answer A. The high price strategy will increase the company's revenue.
B. The high price strategy will decrease the company's revenue.
C. The high price strategy will have no effect on the company's revenue.
D. The high price strategy will increase the company's revenue, but will also increase the company's costs.
Correct Answer
A
Correct Option:
The high price strategy will increase the company's revenue.

About This Question

This is Post Utme Rhema University 2025 Commerce Question 39. It is one of the objective questions from the 2025 Post Utme Rhema University Commerce examination.

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