Post Utme Elizade University 2021 Economics Question 35

Practice objective / multiple choice question 35 from the 2021 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2021 Economics Objective / Multiple Choice
Question 35 POST_UTME_ELIZADE_UNIVERSITY • 2021 • ECONOMICS • objective

Consider a perfectly competitive market with 5 firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the likely outcome for the firms' profit maximization?

Answer Options

Correct Answer A. Each firm will produce at the point where MR = MC.
B. The firms will collude to set a higher price and reduce output.
C. The firms will produce at the point where P = MC.
D. The firms will produce at the point where TR = TC.
Correct Answer
A
Correct Option:
Each firm will produce at the point where MR = MC.

About This Question

This is Post Utme Elizade University 2021 Economics Question 35. It is one of the objective questions from the 2021 Post Utme Elizade University Economics examination.

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