Post Utme Abu 2021 Economics Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Abu Economics examination.

Post Utme Abu 2021 Economics Objective / Multiple Choice
Question 21 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) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

Answer Options

Correct Answer A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm will exit the market.
Correct Answer
A
Correct Option:
The firm will increase its output.

About This Question

This is Post Utme Abu 2021 Economics Question 21. It is one of the objective questions from the 2021 Post Utme Abu Economics examination.

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