Post Utme Christopher University 2020 Economics Question 22

Practice objective / multiple choice question 22 from the 2020 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2020 Economics Objective / Multiple Choice
Question 22 POST_UTME_CHRISTOPHER_UNIVERSITY • 2020 • ECONOMICS • objective

A firm is operating in a perfectly competitive market. If the firm's average total \cost curve intersects its marginal \cost curve at a point where the marginal \cost curve is downward sloping, what will be the firm's optimal output level?

Answer Options

Correct Answer A. The firm will produce at the point where the average total \cost curve intersects the marginal \cost curve.
B. The firm will produce at the point where the marginal \cost curve intersects the demand curve.
C. The firm will produce at the point where the average total \cost curve intersects the demand curve.
D. The firm will produce at the point where the marginal \cost curve intersects the average total \cost curve.
Correct Answer
A
Correct Option:
The firm will produce at the point where the average total \cost curve intersects the marginal \cost curve.

About This Question

This is Post Utme Christopher University 2020 Economics Question 22. It is one of the objective questions from the 2020 Post Utme Christopher University Economics examination.

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