Post Utme Summit University 2023 Commerce Question 28

Practice objective / multiple choice question 28 from the 2023 Post Utme Summit University Commerce examination.

Post Utme Summit University 2023 Commerce Objective / Multiple Choice
Question 28 POST_UTME_SUMMIT_UNIVERSITY • 2023 • COMMERCE • objective

A firm is considering two different production technologies: Technology A and Technology B. Technology A has a higher fixed cost but a lower variable cost per unit. Technology B has a lower fixed cost but a higher variable cost per unit. Which technology should the firm choose if it expects to produce 10,000 units?

Answer Options

Correct Answer A. Technology A
B. Technology B
C. Both technologies are equally profitable
D. Neither technology is profitable
Correct Answer
A
Correct Option:
Technology A

About This Question

This is Post Utme Summit University 2023 Commerce Question 28. It is one of the objective questions from the 2023 Post Utme Summit University Commerce examination.

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