Post Utme Rsu 2020 Commerce Question 38

Practice objective / multiple choice question 38 from the 2020 Post Utme Rsu Commerce examination.

Post Utme Rsu 2020 Commerce Objective / Multiple Choice

Question 38 POST_UTME_RSU • 2020 • COMMERCE • objective

A company is considering two different production processes for producing a certain product. Process A requires an initial investment of 10,000 units of currency and generates a revenue of 15,000 units of currency per unit produced. Process B requires an initial investment of 20,000 units of currency and generates a revenue of 20,000 units of currency per unit produced. If the company wants to maximize its profits, which production process should it choose?

Correct Answer A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer

Correct Option:

Process A

This is Post Utme Rsu 2020 Commerce Question 38. It is one of the objective questions from the 2020 Post Utme Rsu Commerce examination.

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