Post Utme Bells University 2020 Commerce Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Bells University Commerce examination.

Post Utme Bells University 2020 Commerce Objective / Multiple Choice
Question 36 POST_UTME_BELLS_UNIVERSITY • 2020 • COMMERCE • objective

In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve, which is the same as the average variable cost curve. What is the implication of this relationship on the firm's pricing decision?

Answer Options

A. The firm will always produce at the minimum point of the average variable cost curve.
Correct Answer B. The firm will always produce at the point where the marginal revenue equals the marginal cost.
C. The firm will always produce at the point where the average revenue equals the average cost.
D. The firm will always produce at the point where the marginal revenue equals the average revenue.
Correct Answer
B
Correct Option:
The firm will always produce at the point where the marginal revenue equals the marginal cost.

About This Question

This is Post Utme Bells University 2020 Commerce Question 36. It is one of the objective questions from the 2020 Post Utme Bells University Commerce examination.

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