Post Utme Achievers University 2021 Economics Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2021 Economics Objective / Multiple Choice
Question 6 POST_UTME_ACHIEVERS_UNIVERSITY • 2021 • 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 100 units of output, what is the implication of this intersection point on the firm's profit-maximizing output level?

Answer Options

Correct Answer 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.
C. The firm is producing at its minimum point on the average variable \cost (AVC) curve.
D. The firm is producing at its maximum point on the average variable \cost (AVC) curve.
Correct Answer
A
Correct Option:
The firm is producing at its minimum point on the average total \cost (ATC) curve.

About This Question

This is Post Utme Achievers University 2021 Economics Question 6. It is one of the objective questions from the 2021 Post Utme Achievers University Economics examination.

View More Post Utme Achievers University 2021 Economics Questions More Post Utme Achievers University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support