Post Utme Aaua 2021 Economics Question 36

Practice objective / multiple choice question 36 from the 2021 Post Utme Aaua Economics examination.

Post Utme Aaua 2021 Economics Objective / Multiple Choice
Question 36 POST_UTME_AAUA • 2021 • ECONOMICS • objective

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is set at $10, and the marginal \cost (MC) of each firm is $8, what is the profit-maximizing quantity of output for each firm?

Answer Options

Correct Answer A. \( q = \frac{P - MC}{MR} \)
B. \( q = \frac{MC}{P} \)
C. \( q = \frac{P}{MC} \)
D. \( q = \frac{MR}{P} \)
Correct Answer
A
Correct Option:
\( q = \frac{P - MC}{MR} \)

About This Question

This is Post Utme Aaua 2021 Economics Question 36. It is one of the objective questions from the 2021 Post Utme Aaua Economics examination.

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