Post Utme Bells University 2020 Commerce Question 38

Practice objective / multiple choice question 38 from the 2020 Post Utme Bells University Commerce examination.

Post Utme Bells University 2020 Commerce Objective / Multiple Choice
Question 38 POST_UTME_BELLS_UNIVERSITY • 2020 • COMMERCE • objective

A firm is facing a downward-sloping demand curve. What is the implication of this on the firm's pricing decision?

Answer Options

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

About This Question

This is Post Utme Bells University 2020 Commerce Question 38. It is one of the objective questions from the 2020 Post Utme Bells University Commerce examination.

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