Post Utme Igbinedion University 2023 Economics Question 31

Practice objective / multiple choice question 31 from the 2023 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2023 Economics Objective / Multiple Choice

Question 31 POST_UTME_IGBINEDION_UNIVERSITY • 2023 • ECONOMICS • objective

A firm is operating on a long-run average \cost curve. If the firm experiences a 20% increase in output, and the average \cost curve shifts to the right, what is the likely effect on the firm's long-run average \cost?

Answer Options

A. The long-run average \cost will decrease

Correct Answer B. The long-run average \cost will increase

C. The long-run average \cost will remain unchanged

D. The effect on the long-run average \cost is ambiguous

Correct Answer

Correct Option:

The long-run average \cost will increase

About This Question

This is Post Utme Igbinedion University 2023 Economics Question 31. It is one of the objective questions from the 2023 Post Utme Igbinedion University Economics examination.

View More Post Utme Igbinedion University 2023 Economics Questions More Post Utme Igbinedion University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Chat with Support