Post Utme Crawford University 2022 Economics Question 21

Practice objective / multiple choice question 21 from the 2022 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2022 Economics Objective / Multiple Choice
Question 21 POST_UTME_CRAWFORD_UNIVERSITY • 2022 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at a point where the firm is producing at its optimal level of output, what is the implication for the firm's profit-maximizing output?

Answer Options

A. The firm will produce at a level of output where its marginal revenue (MR) equals its marginal \cost (MC).
Correct Answer B. The firm will produce at a level of output where its average revenue (AR) equals its average \cost (AC).
C. The firm will produce at a level of output where its marginal revenue (MR) equals its marginal product (MP).
D. The firm will produce at a level of output where its average revenue (AR) equals its average fixed \cost (AFC).
Correct Answer
B
Correct Option:
The firm will produce at a level of output where its average revenue (AR) equals its average \cost (AC).

About This Question

This is Post Utme Crawford University 2022 Economics Question 21. It is one of the objective questions from the 2022 Post Utme Crawford University Economics examination.

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