Post Utme Joseph Ayo Babalola University 2022 Economics Question 18

Practice objective / multiple choice question 18 from the 2022 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2022 Economics Objective / Multiple Choice

Question 18 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2022 • ECONOMICS • objective

A monopolist faces a demand curve that is downward-sloping. If the firm's marginal revenue (MR) curve intersects its average revenue (AR) curve at a point where MR < AR, what will be the effect on the firm's output?

Answer Options

A. The firm will increase its output.

Correct Answer B. The firm will decrease its output.

C. The firm's output will remain unchanged.

D. The firm will experience a decrease in its average revenue.

Correct Answer

Correct Option:

The firm will decrease its output.

About This Question

This is Post Utme Joseph Ayo Babalola University 2022 Economics Question 18. It is one of the objective questions from the 2022 Post Utme Joseph Ayo Babalola University Economics examination.

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