Post Utme Futa 2021 Economics Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Futa Economics examination.

Post Utme Futa 2021 Economics Objective / Multiple Choice
Question 6 POST_UTME_FUTA • 2021 • ECONOMICS • objective

A government imposes a tax on a firm's profits. The firm's supply curve shifts to the left, and the government collects more revenue. What is the effect on the firm's profit-maximizing output?

Answer Options

A. The firm's profit-maximizing output increases
Correct Answer B. The firm's profit-maximizing output decreases
C. The firm's profit-maximizing output remains unchanged
D. The firm's profit-maximizing output increases, but at a lower price
Correct Answer
B
Correct Option:
The firm's profit-maximizing output decreases

About This Question

This is Post Utme Futa 2021 Economics Question 6. It is one of the objective questions from the 2021 Post Utme Futa Economics examination.

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