Post Utme Aaua 2017 Economics Question 7

Practice objective / multiple choice question 7 from the 2017 Post Utme Aaua Economics examination.

Post Utme Aaua 2017 Economics Objective / Multiple Choice
Question 7 POST_UTME_AAUA • 2017 • ECONOMICS • objective

A firm is producing a good with a cons\tant marginal \cost and a downward-sloping demand curve. The firm is currently producing at a level where the price of the good is ₦100. If the firm increases its production by 10%, what will happen to the price of the good?

Answer Options

A. The price will increase by 10%.
Correct Answer B. The price will decrease by 10%.
C. The price will remain the same.
D. The price will increase by more than 10%.
Correct Answer
B
Correct Option:
The price will decrease by 10%.

About This Question

This is Post Utme Aaua 2017 Economics Question 7. It is one of the objective questions from the 2017 Post Utme Aaua Economics examination.

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