Post Utme Esut 2018 Economics Question 21

Practice objective / multiple choice question 21 from the 2018 Post Utme Esut Economics examination.

Post Utme Esut 2018 Economics Objective / Multiple Choice
Question 21 POST_UTME_ESUT • 2018 • 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 a point where MR > MC, what is the most likely outcome?

Answer Options

A. The firm will increase production to maximize profits.
Correct Answer B. The firm will decrease production to minimize losses.
C. The firm will maintain current production levels.
D. The firm will exit the market.
Correct Answer
B
Correct Option:
The firm will decrease production to minimize losses.

About This Question

This is Post Utme Esut 2018 Economics Question 21. It is one of the objective questions from the 2018 Post Utme Esut Economics examination.

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