Post Utme Veritas University 2018 Commerce Question 30

Practice objective / multiple choice question 30 from the 2018 Post Utme Veritas University Commerce examination.

Post Utme Veritas University 2018 Commerce Objective / Multiple Choice
Question 30 POST_UTME_VERITAS_UNIVERSITY • 2018 • COMMERCE • objective

A firm is considering two different production technologies: Technology A, which has a fixed cost of 100,000 and a variable cost of 20 per unit, and Technology B, which has a fixed cost of 50,000 and a variable cost of 30 per unit. If the firm's current sales are 10,000 units, what is the expected change in total cost under each technology?

Answer Options

Correct Answer A. Increase by 200,000
B. Decrease by 100,000
C. Increase by 50,000
D. Decrease by 50,000
Correct Answer
A
Correct Option:
Increase by 200,000

About This Question

This is Post Utme Veritas University 2018 Commerce Question 30. It is one of the objective questions from the 2018 Post Utme Veritas University Commerce examination.

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