Post Utme Achievers University 2025 Economics Question 16

Practice objective / multiple choice question 16 from the 2025 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2025 Economics Objective / Multiple Choice
Question 16 POST_UTME_ACHIEVERS_UNIVERSITY • 2025 • ECONOMICS • objective

A perfectly competitive firm in the short run will produce where its marginal \cost (MC) is equal to its marginal revenue (MR). However, in the long run, the firm will produce where its average total \cost (ATC) is minimized. Which of the following best describes the relationship between the firm's short-run and long-run production decisions?

Answer Options

A. The firm will produce at a higher quantity in the long run than in the short run.
Correct Answer B. The firm will produce at a lower quantity in the long run than in the short run.
C. The firm will produce at the same quantity in the long run as in the short run.
D. The firm will produce at a quantity that is between the short-run and long-run quantities.
Correct Answer
B
Correct Option:
The firm will produce at a lower quantity in the long run than in the short run.

About This Question

This is Post Utme Achievers University 2025 Economics Question 16. It is one of the objective questions from the 2025 Post Utme Achievers University Economics examination.

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