Post Utme Skyline University 2023 Commerce Question 2

Practice objective / multiple choice question 2 from the 2023 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2023 Commerce Objective / Multiple Choice
Question 2 POST_UTME_SKYLINE_UNIVERSITY • 2023 • COMMERCE • objective

A firm is considering investing in a new production technology that will increase its output by 20% but also increase its costs by 15%. Using the concept of opportunity cost, what is the opportunity cost of the firm's investment in the new technology?

Answer Options

A. The opportunity cost is the 20% increase in output.
B. The opportunity cost is the 15% increase in costs.
Correct Answer C. The opportunity cost is the 20% increase in output minus the 15% increase in costs.
D. The opportunity cost is the 20% increase in output plus the 15% increase in costs.
Correct Answer
C
Correct Option:
The opportunity cost is the 20% increase in output minus the 15% increase in costs.

About This Question

This is Post Utme Skyline University 2023 Commerce Question 2. It is one of the objective questions from the 2023 Post Utme Skyline University Commerce examination.

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