Post Utme Coal City University 2022 Economics Question 11

Practice objective / multiple choice question 11 from the 2022 Post Utme Coal City University Economics examination.

Post Utme Coal City University 2022 Economics Objective / Multiple Choice
Question 11 POST_UTME_COAL_CITY_UNIVERSITY • 2022 • ECONOMICS • objective

A firm's average total \cost curve intersects its marginal \cost curve at point E, where MC = ATC. If the firm is currently producing at point D, where MC > ATC, what can be concluded about the firm's short-run production decision?

Answer Options

A. The firm should increase production to point E.
B. The firm should decrease production to point E.
Correct Answer C. The firm should maintain production at point D.
D. The firm should shut down production.
Correct Answer
C
Correct Option:
The firm should maintain production at point D.

About This Question

This is Post Utme Coal City University 2022 Economics Question 11. It is one of the objective questions from the 2022 Post Utme Coal City University Economics examination.

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