Post Utme Uniport 2019 Economics Question 37

Practice objective / multiple choice question 37 from the 2019 Post Utme Uniport Economics examination.

Post Utme Uniport 2019 Economics Objective / Multiple Choice
Question 37 POST_UTME_UNIPORT • 2019 • ECONOMICS • objective

A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit. If the firm expects to sell 10,000 units of the good per year, which process should it choose?

Answer Options

A. Process A, because it has a lower initial investment and a higher variable \cost.
Correct Answer B. Process B, because it has a higher initial investment and a lower variable \cost.
C. Process A, because it has a higher initial investment and a lower variable \cost.
D. Process B, because it has a lower initial investment and a higher variable \cost.
Correct Answer
B
Correct Option:
Process B, because it has a higher initial investment and a lower variable \cost.

About This Question

This is Post Utme Uniport 2019 Economics Question 37. It is one of the objective questions from the 2019 Post Utme Uniport Economics examination.

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