Post Utme Joseph Ayo Babalola University 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2020 • ECONOMICS • objective

A firm's average total \cost curve intersects its average variable \cost curve at the minimum point of the average total \cost curve. What is the implication of this intersection for the firm's production decision?

Answer Options

A. The firm should increase production to take advantage of economies of scale.
B. The firm should decrease production to reduce \costs.
Correct Answer C. The firm should maintain its current level of production.
D. The firm should increase production to reduce \costs.
Correct Answer
C
Correct Option:
The firm should maintain its current level of production.

About This Question

This is Post Utme Joseph Ayo Babalola University 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Joseph Ayo Babalola University Economics examination.

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