Post Utme Covenant University 2022 Commerce Question 32

Practice objective / multiple choice question 32 from the 2022 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2022 Commerce Objective / Multiple Choice
Question 32 POST_UTME_COVENANT_UNIVERSITY • 2022 • COMMERCE • objective

A firm is considering entering a new market. The market research indicates that the demand for the product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its profit, what should it do?

Answer Options

A. Increase the price to maximize profit
Correct Answer B. Decrease the price to maximize profit
C. Keep the price constant to maximize profit
D. Do not enter the market
Correct Answer
B
Correct Option:
Decrease the price to maximize profit

About This Question

This is Post Utme Covenant University 2022 Commerce Question 32. It is one of the objective questions from the 2022 Post Utme Covenant University Commerce examination.

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