Post Utme Christopher University 2021 Economics Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2021 Economics Objective / Multiple Choice
Question 11 POST_UTME_CHRISTOPHER_UNIVERSITY • 2021 • 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 marginal \cost (MC) curve at point E, where MR = MC, and the firm's average total \cost (ATC) curve is U-shaped, what is the likely effect on the firm's profit-maximizing output level if the demand curve shifts to the left?

Answer Options

A. The firm will increase its profit-maximizing output level.
Correct Answer B. The firm will decrease its profit-maximizing output level.
C. The firm's profit-maximizing output level will remain unchanged.
D. The firm will experience a decrease in profit-maximizing output level, but the exact change cannot be determined.
Correct Answer
B
Correct Option:
The firm will decrease its profit-maximizing output level.

About This Question

This is Post Utme Christopher University 2021 Economics Question 11. It is one of the objective questions from the 2021 Post Utme Christopher University Economics examination.

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