Post Utme Al Hikmah University 2018 Economics Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2018 Economics Objective / Multiple Choice

Question 1 POST_UTME_AL-HIKMAH_UNIVERSITY • 2018 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects its marginal \cost (MC) curve at a point where MC < ATC, what is the likely outcome for the firm's profit?

Answer Options

Correct Answer A. The firm will experience a loss.

B. The firm will break even.

C. The firm will experience a profit.

D. The firm's profit will be maximized.

Correct Answer

Correct Option:

The firm will experience a loss.

About This Question

This is Post Utme Al Hikmah University 2018 Economics Question 1. It is one of the objective questions from the 2018 Post Utme Al Hikmah University Economics examination.

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