Post Utme Aaua 2023 Economics Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Aaua Economics examination.

Post Utme Aaua 2023 Economics Objective / Multiple Choice
Question 11 POST_UTME_AAUA • 2023 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing at its optimal level of output, what is the implication of this intersection point on the firm's profit-maximizing output level?

Answer Options

A. The firm is producing at its minimum point on the average total \cost (ATC) curve.
B. The firm is producing at its maximum point on the average total \cost (ATC) curve.
Correct Answer C. The firm is producing at its optimal level of output, where MR = MC.
D. The firm is producing at its minimum point on the average variable \cost (AVC) curve.
Correct Answer
C
Correct Option:
The firm is producing at its optimal level of output, where MR = MC.

About This Question

This is Post Utme Aaua 2023 Economics Question 11. It is one of the objective questions from the 2023 Post Utme Aaua Economics examination.

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