Post Utme Crawford University 2018 Economics Question 27

Practice objective / multiple choice question 27 from the 2018 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2018 Economics Objective / Multiple Choice
Question 27 POST_UTME_CRAWFORD_UNIVERSITY • 2018 • ECONOMICS • objective

A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. The firm's marginal revenue is ₦100 and its marginal \cost is ₦80. U\sing the concept of profit maximization, explain why the firm should produce more of the good.

Answer Options

Correct Answer A. The firm should produce more of the good because the marginal revenue is greater than the marginal \cost.
B. The firm should produce less of the good because the marginal revenue is less than the marginal \cost.
C. The firm should produce the same quantity of the good because the marginal revenue is equal to the marginal \cost.
D. The firm should not produce the good because the marginal revenue is less than the marginal \cost.
Correct Answer
A
Correct Option:
The firm should produce more of the good because the marginal revenue is greater than the marginal \cost.

About This Question

This is Post Utme Crawford University 2018 Economics Question 27. It is one of the objective questions from the 2018 Post Utme Crawford University Economics examination.

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