Post Utme Delsu 2020 Economics Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Delsu Economics examination.

Post Utme Delsu 2020 Economics Objective / Multiple Choice
Question 16 POST_UTME_DELSU • 2020 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing at its optimal output level, what is the opportunity \cost of producing one more unit of the good?

Answer Options

A. The opportunity \cost is equal to the marginal revenue (MR) at point E.
Correct Answer B. The opportunity \cost is equal to the marginal \cost (MC) at point E.
C. The opportunity \cost is equal to the price of the good.
D. The opportunity \cost is equal to the average revenue (AR) at point E.
Correct Answer
B
Correct Option:
The opportunity \cost is equal to the marginal \cost (MC) at point E.

About This Question

This is Post Utme Delsu 2020 Economics Question 16. It is one of the objective questions from the 2020 Post Utme Delsu Economics examination.

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