Post Utme Eksu 2020 Economics Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Eksu Economics examination.

Post Utme Eksu 2020 Economics Objective / Multiple Choice
Question 36 POST_UTME_EKSU • 2020 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a cons\tant returns to scale production function. If the firm's average \cost curve intersects its marginal \cost curve at a point where the firm is producing at its optimal level of output, what can be concluded about the firm's profit-maximizing output level?

Answer Options

A. The firm is producing at its minimum efficient scale.
Correct Answer B. The firm is producing at its maximum efficient scale.
C. The firm is producing at its optimal level of output.
D. The firm is producing at its minimum \cost level.
Correct Answer
B
Correct Option:
The firm is producing at its maximum efficient scale.

About This Question

This is Post Utme Eksu 2020 Economics Question 36. It is one of the objective questions from the 2020 Post Utme Eksu Economics examination.

View More Post Utme Eksu 2020 Economics Questions More Post Utme Eksu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support