Post Utme Christopher University 2023 Commerce Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2023 Commerce Objective / Multiple Choice
Question 1 POST_UTME_CHRISTOPHER_UNIVERSITY • 2023 • COMMERCE • objective

In a perfectly competitive market, the supply curve is perfectly elastic because the firm can easily increase its output to meet changes in demand. What is the implication of this on the firm's profit-maximizing output?

Answer Options

A. The firm will produce at the minimum point of the average total cost curve.
Correct Answer B. The firm will produce at the point where the marginal revenue equals the marginal cost.
C. The firm will produce at the point where the average revenue equals the average cost.
D. The firm will produce at the point where the marginal revenue equals the average cost.
Correct Answer
B
Correct Option:
The firm will produce at the point where the marginal revenue equals the marginal cost.

About This Question

This is Post Utme Christopher University 2023 Commerce Question 1. It is one of the objective questions from the 2023 Post Utme Christopher University Commerce examination.

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