Post Utme Esut 2019 Economics Question 33

Practice objective / multiple choice question 33 from the 2019 Post Utme Esut Economics examination.

Post Utme Esut 2019 Economics Objective / Multiple Choice
Question 33 POST_UTME_ESUT • 2019 • ECONOMICS • objective

Suppose a firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its production level, what will happen to its average revenue (AR) and marginal revenue (MR)?

Answer Options

A. AR and MR will both increase
Correct Answer B. AR will decrease, but MR will remain cons\tant
C. AR will increase, but MR will decrease
D. AR and MR will both decrease
Correct Answer
B
Correct Option:
AR will decrease, but MR will remain cons\tant

About This Question

This is Post Utme Esut 2019 Economics Question 33. It is one of the objective questions from the 2019 Post Utme Esut Economics examination.

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