Post Utme Veritas University 2017 Economics Question 5

Practice objective / multiple choice question 5 from the 2017 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2017 Economics Objective / Multiple Choice
Question 5 POST_UTME_VERITAS_UNIVERSITY • 2017 • ECONOMICS • objective

A firm is considering two alternative production techno\logies to produce a particular good. Techno\logy A requires an initial investment of ₦100,000 and yields a profit of ₦50,000 per unit. Techno\logy B requires an initial investment of ₦150,000 and yields a profit of ₦60,000 per unit. If the firm has a budget of ₦200,000, how many units of each techno\logy should it use to maximize its profit?

Answer Options

Correct Answer A. \( 2 units of Techno\logy A, 1 unit of Techno\logy B \)
B. \( 1 unit of Techno\logy A, 2 units of Techno\logy B \)
C. \( 3 units of Techno\logy A, 0 units of Techno\logy B \)
D. \( 0 units of Techno\logy A, 3 units of Techno\logy B \)
Correct Answer
A
Correct Option:
\( 2 units of Techno\logy A, 1 unit of Techno\logy B \)

About This Question

This is Post Utme Veritas University 2017 Economics Question 5. It is one of the objective questions from the 2017 Post Utme Veritas University Economics examination.

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