Post Utme Caleb University 2023 Economics Question 31

Practice objective / multiple choice question 31 from the 2023 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2023 Economics Objective / Multiple Choice
Question 31 POST_UTME_CALEB_UNIVERSITY • 2023 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at a point where the firm is producing at its optimal level of output, what is the implication for the firm's profit?

Answer Options

Correct Answer A. The firm will earn zero economic profit.
B. The firm will earn positive economic profit.
C. The firm will earn negative economic profit.
D. The firm will be operating at a point of increa\sing returns to scale.
Correct Answer
A
Correct Option:
The firm will earn zero economic profit.

About This Question

This is Post Utme Caleb University 2023 Economics Question 31. It is one of the objective questions from the 2023 Post Utme Caleb University Economics examination.

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