Post Utme Wellspring University 2019 Commerce Question 7

Practice objective / multiple choice question 7 from the 2019 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2019 Commerce Objective / Multiple Choice
Question 7 POST_UTME_WELLSPRING_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering two production technologies: one that requires an initial investment of ₦10 million and another that requires an initial investment of ₦20 million. The first technology has a higher marginal cost but a lower fixed cost. Which technology should the firm choose if it expects to produce 10,000 units?

Answer Options

A. The firm should choose the technology with the higher fixed cost
Correct Answer B. The firm should choose the technology with the lower marginal cost
C. The firm should choose the technology with the higher marginal cost
D. The firm should choose the technology with the lower fixed cost
Correct Answer
B
Correct Option:
The firm should choose the technology with the lower marginal cost

About This Question

This is Post Utme Wellspring University 2019 Commerce Question 7. It is one of the objective questions from the 2019 Post Utme Wellspring University Commerce examination.

View More Post Utme Wellspring University 2019 Commerce Questions More Post Utme Wellspring University Practice Questions Back to Questions

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