Post Utme Abu 2021 Economics Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Abu Economics examination.

Post Utme Abu 2021 Economics Objective / Multiple Choice
Question 16 POST_UTME_ABU • 2021 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at a point where MR = AVC, what is the likely outcome for the firm's profit?

Answer Options

A. The firm will experience a loss.
B. The firm will break even.
Correct Answer C. The firm will experience a profit.
D. The firm's profit will be maximized.
Correct Answer
C
Correct Option:
The firm will experience a profit.

About This Question

This is Post Utme Abu 2021 Economics Question 16. It is one of the objective questions from the 2021 Post Utme Abu Economics examination.

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