Post Utme Eksu 2024 Economics Question 28

Practice objective / multiple choice question 28 from the 2024 Post Utme Eksu Economics examination.

Post Utme Eksu 2024 Economics Objective / Multiple Choice

Question 28 POST_UTME_EKSU • 2024 • ECONOMICS • objective

A firm is producing a good with a total revenue of ₦50,000 and a total \cost of ₦30,000. U\sing the concept of profit maximization, explain why the firm may choose to produce more of the good.

Correct Answer A. The firm has a high marginal revenue, leading to a high profit margin.

B. The firm has a low marginal \cost, leading to a low \cost of production.

C. The firm has a high demand for the good, leading to a high revenue.

D. The firm has a low supply of the good, leading to a low \cost of production.

Correct Answer

Correct Option:

The firm has a high marginal revenue, leading to a high profit margin.

This is Post Utme Eksu 2024 Economics Question 28. It is one of the objective questions from the 2024 Post Utme Eksu Economics examination.

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