Post Utme Summit University 2025 Commerce Question 3

Practice objective / multiple choice question 3 from the 2025 Post Utme Summit University Commerce examination.

Post Utme Summit University 2025 Commerce Objective / Multiple Choice
Question 3 POST_UTME_SUMMIT_UNIVERSITY • 2025 • COMMERCE • objective

A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦10,000 and has a fixed cost of ₦5,000 per unit. Process B requires an initial investment of ₦20,000 and has a fixed cost of ₦3,000 per unit. If the firm produces 1,000 units of the good, which process is more profitable?

Answer Options

Correct Answer A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Summit University 2025 Commerce Question 3. It is one of the objective questions from the 2025 Post Utme Summit University Commerce examination.

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