Post Utme Bsu 2019 Economics Question 11

Practice objective / multiple choice question 11 from the 2019 Post Utme Bsu Economics examination.

Post Utme Bsu 2019 Economics Objective / Multiple Choice
Question 11 POST_UTME_BSU • 2019 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at point A, and the firm's marginal \cost (MC) curve intersects its average total \cost (ATC) curve at point B, what is the most likely outcome for the firm?

Answer Options

A. The firm will shut down in the short run.
B. The firm will operate in the short run but will not produce at point A.
Correct Answer C. The firm will operate in the short run and produce at point A.
D. The firm will operate in the long run and produce at point A.
Correct Answer
C
Correct Option:
The firm will operate in the short run and produce at point A.

About This Question

This is Post Utme Bsu 2019 Economics Question 11. It is one of the objective questions from the 2019 Post Utme Bsu Economics examination.

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