Post Utme Futa 2021 Economics Question 9

Practice objective / multiple choice question 9 from the 2021 Post Utme Futa Economics examination.

Post Utme Futa 2021 Economics Objective / Multiple Choice

Question 9 POST_UTME_FUTA • 2021 • ECONOMICS • objective

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

Correct Answer A. The firm's profit-maximizing output increases

B. The firm's profit-maximizing output decreases

C. The firm's profit-maximizing output remains unchanged

D. The firm's profit-maximizing output decreases, but at a higher price

Correct Answer

Correct Option:

The firm's profit-maximizing output increases

This is Post Utme Futa 2021 Economics Question 9. It is one of the objective questions from the 2021 Post Utme Futa Economics examination.

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