Post Utme Lasu 2017 Commerce Question 16

Practice objective / multiple choice question 16 from the 2017 Post Utme Lasu Commerce examination.

Post Utme Lasu 2017 Commerce Objective / Multiple Choice

Question 16 POST_UTME_LASU • 2017 • COMMERCE • objective

In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the implication of this for the firm's profit-maximizing output level?

A. The firm will produce at the minimum point of its average total cost curve.

Correct Answer B. The firm will produce at the point where its marginal revenue equals its marginal cost.

C. The firm will produce at the maximum point of its average revenue curve.

D. The firm will produce at the minimum point of its average revenue curve.

Correct Answer

Correct Option:

The firm will produce at the point where its marginal revenue equals its marginal cost.

This is Post Utme Lasu 2017 Commerce Question 16. It is one of the objective questions from the 2017 Post Utme Lasu Commerce examination.

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