Post Utme Babcock University 2018 Economics Question 38

Practice objective / multiple choice question 38 from the 2018 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2018 Economics Objective / Multiple Choice
Question 38 POST_UTME_BABCOCK_UNIVERSITY • 2018 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing at its profit-maximizing level of output, what is the implication of this intersection point on the firm's short-run production decision?

Answer Options

A. The firm will increase its production level to take advantage of the higher price.
B. The firm will decrease its production level to reduce \costs.
Correct Answer C. The firm will maintain its current production level.
D. The firm will exit the market.
Correct Answer
C
Correct Option:
The firm will maintain its current production level.

About This Question

This is Post Utme Babcock University 2018 Economics Question 38. It is one of the objective questions from the 2018 Post Utme Babcock University Economics examination.

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