Post Utme Ims U 2018 Economics Question 21

Practice objective / multiple choice question 21 from the 2018 Post Utme Ims U Economics examination.

Post Utme Ims U 2018 Economics Objective / Multiple Choice
Question 21 POST_UTME_IMS_U • 2018 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average \cost curve (AC) intersects the marginal \cost (MC) curve at a point where MC < AC, what is the likely outcome for the firm's production level?

Answer Options

Correct Answer A. The firm will increase production to the point where MC = AC
B. The firm will decrease production to the point where MC = AC
C. The firm will remain at the current production level
D. The firm will increase production beyond the point where MC = AC
Correct Answer
A
Correct Option:
The firm will increase production to the point where MC = AC

About This Question

This is Post Utme Ims U 2018 Economics Question 21. It is one of the objective questions from the 2018 Post Utme Ims U Economics examination.

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