Post Utme Afe Babalola University 2021 Economics Question 29

Practice objective / multiple choice question 29 from the 2021 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2021 Economics Objective / Multiple Choice

Question 29 POST_UTME_AFE_BABALOLA_UNIVERSITY • 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

Correct Option:

The firm will increase its output.

About This Question

This is Post Utme Afe Babalola University 2021 Economics Question 29. It is one of the objective questions from the 2021 Post Utme Afe Babalola University Economics examination.

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