Post Utme Ims U 2022 Economics Question 16

Practice objective / multiple choice question 16 from the 2022 Post Utme Ims U Economics examination.

Post Utme Ims U 2022 Economics Objective / Multiple Choice
Question 16 POST_UTME_IMS_U • 2022 • ECONOMICS • objective
Post Utme Ims U 2022 Economics Question 16 diagram

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. If the firm's marginal revenue (MR) curve intersects the marginal \cost (MC) curve at point E, and the firm is currently producing at point D, what is the likely effect on the firm's profit-maximizing output level if the market demand curve shifts to the left?

Answer Options

A. The firm will increase its output level.
Correct Answer B. The firm will decrease its output level.
C. The firm's output level will remain unchanged.
D. The firm will increase its output level in the short run but decrease it in the long run.
Correct Answer
B
Correct Option:
The firm will decrease its output level.

About This Question

This is Post Utme Ims U 2022 Economics Question 16. It is one of the objective questions from the 2022 Post Utme Ims U Economics examination.

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