Post Utme Afe Babalola University 2024 Economics Question 11

Practice objective / multiple choice question 11 from the 2024 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2024 Economics Objective / Multiple Choice
Question 11 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2024 • ECONOMICS • objective
Post Utme Afe Babalola University 2024 Economics Question 11 diagram

A monopolistically competitive firm faces a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point A, and the firm's average revenue (AR) curve intersects its average \cost (AC) curve at point B, which of the following statements is true?

Answer Options

A. The firm is operating in the short run and is maximizing profits.
B. The firm is operating in the long run and is minimizing losses.
C. The firm is operating in the short run and is minimizing losses.
Correct Answer D. The firm is operating in the long run and is maximizing profits.
Correct Answer
D
Correct Option:
The firm is operating in the long run and is maximizing profits.

About This Question

This is Post Utme Afe Babalola University 2024 Economics Question 11. It is one of the objective questions from the 2024 Post Utme Afe Babalola University Economics examination.

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