Post Utme Covenant University 2025 Commerce Question 16

Practice objective / multiple choice question 16 from the 2025 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2025 Commerce Objective / Multiple Choice
Question 16 POST_UTME_COVENANT_UNIVERSITY • 2025 • COMMERCE • objective

In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. What is the implication of this relationship on the firm's production decision?

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 Covenant University 2025 Commerce Question 16. It is one of the objective questions from the 2025 Post Utme Covenant University Commerce examination.

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