Post Utme Crawford University 2017 Economics Question 31

Practice objective / multiple choice question 31 from the 2017 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2017 Economics Objective / Multiple Choice
Question 31 POST_UTME_CRAWFORD_UNIVERSITY • 2017 • ECONOMICS • objective

A firm operating in a perfectly competitive market is faced with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output and price?

Answer Options

Correct Answer A. The firm will increase its output and lower its price.
B. The firm will decrease its output and lower its price.
C. The firm will increase its output and raise its price.
D. The firm will decrease its output and raise its price.
Correct Answer
A
Correct Option:
The firm will increase its output and lower its price.

About This Question

This is Post Utme Crawford University 2017 Economics Question 31. It is one of the objective questions from the 2017 Post Utme Crawford University Economics examination.

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