Post Utme Bowen University 2021 Economics Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2021 Economics Objective / Multiple Choice
Question 21 POST_UTME_BOWEN_UNIVERSITY • 2021 • 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, and the firm's average revenue (AR) curve is downward sloping, which of the following statements is true?

Answer Options

Correct Answer A. The firm is maximizing profits.
B. The firm is minimizing \costs.
C. The firm is producing at the point of diminishing marginal returns.
D. The firm is producing at the point of increa\sing marginal returns.
Correct Answer
A
Correct Option:
The firm is maximizing profits.

About This Question

This is Post Utme Bowen University 2021 Economics Question 21. It is one of the objective questions from the 2021 Post Utme Bowen University Economics examination.

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