Post Utme Coal City University 2023 Economics Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Coal City University Economics examination.

Post Utme Coal City University 2023 Economics Objective / Multiple Choice
Question 39 POST_UTME_COAL_CITY_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 operating at a loss, what is the likely cause of the loss?

Answer Options

Correct Answer A. The firm is producing at a level of output where the marginal revenue (MR) curve is less than the marginal \cost (MC) curve.
B. The firm is producing at a level of output where the MR curve is greater than the MC curve.
C. The firm is producing at a level of output where the ATC curve is less than the AR curve.
D. The firm is producing at a level of output where the ATC curve is greater than the AR curve.
Correct Answer
A
Correct Option:
The firm is producing at a level of output where the marginal revenue (MR) curve is less than the marginal \cost (MC) curve.

About This Question

This is Post Utme Coal City University 2023 Economics Question 39. It is one of the objective questions from the 2023 Post Utme Coal City University Economics examination.

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