Post Utme Delsu 2019 Economics Question 31

Practice objective / multiple choice question 31 from the 2019 Post Utme Delsu Economics examination.

Post Utme Delsu 2019 Economics Objective / Multiple Choice
Question 31 POST_UTME_DELSU • 2019 • 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 ATC curve is downward sloping, what can be concluded about the firm's production level?

Answer Options

Correct Answer A. The firm is producing at a level where the marginal \cost (MC) is equal to the marginal revenue (MR).
B. The firm is producing at a level where the MC is greater than the MR.
C. The firm is producing at a level where the MC is less than the MR.
D. The firm is producing at a level where the MC is equal to the MR, but the ATC curve is upward sloping.
Correct Answer
A
Correct Option:
The firm is producing at a level where the marginal \cost (MC) is equal to the marginal revenue (MR).

About This Question

This is Post Utme Delsu 2019 Economics Question 31. It is one of the objective questions from the 2019 Post Utme Delsu Economics examination.

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