Post Utme Ksu 2020 Economics Question 26

Practice objective / multiple choice question 26 from the 2020 Post Utme Ksu Economics examination.

Post Utme Ksu 2020 Economics Objective / Multiple Choice
Question 26 POST_UTME_KSU • 2020 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average \cost curve intersects the demand curve at a point where the firm is producing at its optimal level of output, what is the implication for the firm's profit-maximizing price?

Answer Options

Correct Answer A. The firm's profit-maximizing price is equal to the market price.
B. The firm's profit-maximizing price is greater than the market price.
C. The firm's profit-maximizing price is less than the market price.
D. The firm's profit-maximizing price is zero.
Correct Answer
A
Correct Option:
The firm's profit-maximizing price is equal to the market price.

About This Question

This is Post Utme Ksu 2020 Economics Question 26. It is one of the objective questions from the 2020 Post Utme Ksu Economics examination.

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