Post Utme Caleb University 2017 Economics Question 26

Practice objective / multiple choice question 26 from the 2017 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2017 Economics Objective / Multiple Choice
Question 26 POST_UTME_CALEB_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a firm operating under a perfectly competitive market structure. If the firm's average \cost curve intersects the demand curve at point A, and the firm's marginal \cost curve intersects the demand curve at point B, what is the likely outcome for the firm's profit?

Answer Options

A. The firm will experience a loss.
B. The firm will experience a normal profit.
Correct Answer C. The firm will experience a supernormal profit.
D. The firm will experience a loss, but the loss will be minimized.
Correct Answer
C
Correct Option:
The firm will experience a supernormal profit.

About This Question

This is Post Utme Caleb University 2017 Economics Question 26. It is one of the objective questions from the 2017 Post Utme Caleb University Economics examination.

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