Post Utme Abu 2019 Economics Question 4

Practice objective / multiple choice question 4 from the 2019 Post Utme Abu Economics examination.

Post Utme Abu 2019 Economics Objective / Multiple Choice

Question 4 POST_UTME_ABU • 2019 • ECONOMICS • objective

A monopolistically competitive firm faces a demand curve that is downward-sloping and a supply curve that is upward-sloping. If the firm produces at a point where the demand curve is \tangent to the supply curve, what is the optimal quantity of the good that the firm should produce?

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

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

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

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

Correct Answer

Correct Option:

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

This is Post Utme Abu 2019 Economics Question 4. It is one of the objective questions from the 2019 Post Utme Abu Economics examination.

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