Post Utme Crawford University 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_CRAWFORD_UNIVERSITY • 2020 • ECONOMICS • objective

A firm operating in a perfectly competitive market is considering an increase in production. If the marginal revenue (MR) curve is downward-sloping, what will be the effect on the firm's profit-maximizing output?

Answer Options

A. The firm will increase production to the point where MR = MC.
Correct Answer B. The firm will decrease production to the point where MR = MC.
C. The firm will not change production.
D. The firm will increase production indefinitely.
Correct Answer
B
Correct Option:
The firm will decrease production to the point where MR = MC.

About This Question

This is Post Utme Crawford University 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Crawford University Economics examination.

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