Post Utme Afe Babalola University 2020 Economics Question 28

Practice objective / multiple choice question 28 from the 2020 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2020 Economics Objective / Multiple Choice
Question 28 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2020 • ECONOMICS • objective

A firm's average total \cost (ATC) curve is U-shaped. What does this imply about the firm's production?

Answer Options

Correct Answer A. The firm is producing at a level of output where the marginal \cost (MC) is equal to the average total \cost (ATC).
B. The firm is producing at a level of output where the marginal \cost (MC) is greater than the average total \cost (ATC).
C. The firm is producing at a level of output where the marginal \cost (MC) is less than the average total \cost (ATC).
D. The firm is producing at a level of output where the marginal \cost (MC) is equal to the average variable \cost (AVC).
Correct Answer
A
Correct Option:
The firm is producing at a level of output where the marginal \cost (MC) is equal to the average total \cost (ATC).

About This Question

This is Post Utme Afe Babalola University 2020 Economics Question 28. It is one of the objective questions from the 2020 Post Utme Afe Babalola University Economics examination.

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