Post Utme Bsu 2017 Economics Question 16

Practice objective / multiple choice question 16 from the 2017 Post Utme Bsu Economics examination.

Post Utme Bsu 2017 Economics Objective / Multiple Choice
Question 16 POST_UTME_BSU • 2017 • ECONOMICS • objective

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is P = 10, and the marginal \cost (MC) of each firm is 5, what is the profit-maximizing quantity (Q) for each firm?

Answer Options

Correct Answer A. \( Q = \frac{P - MC}{P} \times n \)
B. \( Q = \frac{P}{MC} \times n \)
C. \( Q = \frac{MC}{P} \times n \)
D. \( Q = \frac{P + MC}{P} \times n \)
Correct Answer
A
Correct Option:
\( Q = \frac{P - MC}{P} \times n \)

About This Question

This is Post Utme Bsu 2017 Economics Question 16. It is one of the objective questions from the 2017 Post Utme Bsu Economics examination.

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