Post Utme Covenant University 2020 Economics Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2020 Economics Objective / Multiple Choice
Question 11 POST_UTME_COVENANT_UNIVERSITY • 2020 • ECONOMICS • objective
Post Utme Covenant University 2020 Economics Question 11 diagram

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 A, and the firm's average revenue (AR) curve intersects its average \cost (AC) curve at point B, what is the optimal price and quantity for the firm to produce?

Answer Options

A. \( P = 10, Q = 20 \)
Correct Answer B. \( P = 15, Q = 30 \)
C. \( P = 20, Q = 40 \)
D. \( P = 25, Q = 50 \)
Correct Answer
B
Correct Option:
\( P = 15, Q = 30 \)

About This Question

This is Post Utme Covenant University 2020 Economics Question 11. It is one of the objective questions from the 2020 Post Utme Covenant University Economics examination.

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