Post Utme Rsu 2023 Commerce Question 4

Practice objective / multiple choice question 4 from the 2023 Post Utme Rsu Commerce examination.

Post Utme Rsu 2023 Commerce Objective / Multiple Choice
Question 4 POST_UTME_RSU • 2023 • COMMERCE • objective

A firm is considering adopting a new production technology. If the new technology has a higher fixed cost but a lower variable cost, what is the likely outcome for the firm's average cost?

Answer Options

A. The firm's average cost will increase.
Correct Answer B. The firm's average cost will decrease.
C. The firm's average cost will remain unchanged.
D. The firm's average cost will be unaffected by the new technology.
Correct Answer
B
Correct Option:
The firm's average cost will decrease.

About This Question

This is Post Utme Rsu 2023 Commerce Question 4. It is one of the objective questions from the 2023 Post Utme Rsu Commerce examination.

View More Post Utme Rsu 2023 Commerce Questions More Post Utme Rsu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support