Post Utme Esut 2018 Commerce Question 7

Practice objective / multiple choice question 7 from the 2018 Post Utme Esut Commerce examination.

Post Utme Esut 2018 Commerce Objective / Multiple Choice

Question 7 POST_UTME_ESUT • 2018 • COMMERCE • objective

A firm's revenue is maximized when the marginal revenue (MR) equals the marginal cost (MC). Explain why this is the case.

A. Because the firm's total revenue is maximized when the marginal revenue equals the marginal cost.

B. Because the firm's total cost is minimized when the marginal revenue equals the marginal cost.

Correct Answer C. Because the firm's profit is maximized when the marginal revenue equals the marginal cost.

D. Because the firm's output is maximized when the marginal revenue equals the marginal cost.

Correct Answer

Correct Option:

Because the firm's profit is maximized when the marginal revenue equals the marginal cost.

This is Post Utme Esut 2018 Commerce Question 7. It is one of the objective questions from the 2018 Post Utme Esut Commerce examination.

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