Post Utme Al Hikmah University 2019 Economics Question 36

Practice objective / multiple choice question 36 from the 2019 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2019 Economics Objective / Multiple Choice
Question 36 POST_UTME_AL-HIKMAH_UNIVERSITY • 2019 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at a point where MR = AVC, what is the likely outcome for the firm's profit-maximizing output level?

Answer Options

A. The firm will produce at the point where MR = MC
Correct Answer B. The firm will produce at the point where MR = AVC
C. The firm will produce at the point where MR = ATC
D. The firm will produce at the point where MR = AFC
Correct Answer
B
Correct Option:
The firm will produce at the point where MR = AVC

About This Question

This is Post Utme Al Hikmah University 2019 Economics Question 36. It is one of the objective questions from the 2019 Post Utme Al Hikmah University Economics examination.

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