Post Utme Achievers University 2022 Economics Question 4

Practice objective / multiple choice question 4 from the 2022 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2022 Economics Objective / Multiple Choice
Question 4 POST_UTME_ACHIEVERS_UNIVERSITY • 2022 • ECONOMICS • objective

A government imposes a tax on a firm's output, cau\sing the firm's supply curve to shift to the left. What is the effect of this tax on the firm's profit-maximizing output level?

Answer Options

A. The firm's profit-maximizing output level increases.
Correct Answer B. The firm's profit-maximizing output level decreases.
C. The firm's profit-maximizing output level remains cons\tant.
D. The firm's profit-maximizing output level increases, but at a lower price.
Correct Answer
B
Correct Option:
The firm's profit-maximizing output level decreases.

About This Question

This is Post Utme Achievers University 2022 Economics Question 4. It is one of the objective questions from the 2022 Post Utme Achievers University Economics examination.

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