Post Utme Crawford University 2018 Commerce Question 31

Practice objective / multiple choice question 31 from the 2018 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2018 Commerce Objective / Multiple Choice
Question 31 POST_UTME_CRAWFORD_UNIVERSITY • 2018 • COMMERCE • objective

In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?

Answer Options

A. The equilibrium price is the price at which the quantity supplied equals the quantity demanded.
B. The equilibrium quantity is the quantity at which the marginal cost equals the marginal revenue.
Correct Answer C. The equilibrium price is the price at which the quantity supplied equals the quantity demanded, and the equilibrium quantity is the quantity at which the marginal cost equals the marginal revenue.
D. The equilibrium price is the price at which the quantity supplied equals the quantity demanded, and the equilibrium quantity is the quantity at which the marginal cost equals the marginal revenue, but the supply curve is not horizontal.
Correct Answer
C
Correct Option:
The equilibrium price is the price at which the quantity supplied equals the quantity demanded, and the equilibrium quantity is the quantity at which the marginal cost equals the marginal revenue.

About This Question

This is Post Utme Crawford University 2018 Commerce Question 31. It is one of the objective questions from the 2018 Post Utme Crawford University Commerce examination.

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