Post Utme Esut 2020 Commerce Question 38

Practice objective / multiple choice question 38 from the 2020 Post Utme Esut Commerce examination.

Post Utme Esut 2020 Commerce Objective / Multiple Choice
Question 38 POST_UTME_ESUT • 2020 • COMMERCE • objective

A firm is operating in a market with a demand curve that is downward sloping and a supply curve that is upward sloping. The firm's marginal revenue (MR) and marginal cost (MC) curves are also given. Which of the following best describes the firm's optimal output level?

Answer Options

Correct Answer A. The firm's optimal output level is where MR = MC.
B. The firm's optimal output level is where MR > MC.
C. The firm's optimal output level is where MR < MC.
D. The firm's optimal output level is where MR = MC and MC is at its minimum.
Correct Answer
A
Correct Option:
The firm's optimal output level is where MR = MC.

About This Question

This is Post Utme Esut 2020 Commerce Question 38. It is one of the objective questions from the 2020 Post Utme Esut Commerce examination.

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