Post Utme Abu 2019 Economics Question 1

Practice objective / multiple choice question 1 from the 2019 Post Utme Abu Economics examination.

Post Utme Abu 2019 Economics Objective / Multiple Choice

Question 1 POST_UTME_ABU • 2019 • 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 price elasticity of demand is unit elastic, what is the optimal quantity of the good that the firm should produce?

A. \( Q^* = \frac{P}{pi} \)

B. \( Q^* = \frac{P}{MC} \)

Correct Answer C. \( Q^* = \frac{MR}{MC} \)

D. \( Q^* = \frac{MC}{MR} \)

Correct Answer

Correct Option:

\( Q^* = \frac{MR}{MC} \)

This is Post Utme Abu 2019 Economics Question 1. It is one of the objective questions from the 2019 Post Utme Abu Economics examination.

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