Post Utme Lasu 2018 Economics Question 31

Practice objective / multiple choice question 31 from the 2018 Post Utme Lasu Economics examination.

Post Utme Lasu 2018 Economics Objective / Multiple Choice

Question 31 POST_UTME_LASU • 2018 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with cons\tant returns to scale. If the firm's average \cost curve intersects the marginal \cost curve at point A, and the price of the good is P, what is the firm's optimal output level?

Correct Answer A. \( Q^* = \frac{P}{MC} \)

B. \( Q^* = \frac{P}{AC} \)

C. \( Q^* = \frac{MC}{P} \)

D. \( Q^* = \frac{AC}{P} \)

Correct Answer

Correct Option:

\( Q^* = \frac{P}{MC} \)

This is Post Utme Lasu 2018 Economics Question 31. It is one of the objective questions from the 2018 Post Utme Lasu Economics examination.

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