Post Utme Lasu 2019 Economics Question 6

Practice objective / multiple choice question 6 from the 2019 Post Utme Lasu Economics examination.

Post Utme Lasu 2019 Economics Objective / Multiple Choice
Question 6 POST_UTME_LASU • 2019 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing at a level of output where the average revenue (AR) curve is above the average \cost (AC) curve, what can be concluded about the firm's profit-maximizing output?

Answer Options

A. The firm is producing at a level of output where the average revenue (AR) curve is below the average \cost (AC) curve.
Correct Answer B. The firm is producing at a level of output where the average revenue (AR) curve is above the average \cost (AC) curve.
C. The firm is producing at a level of output where the average revenue (AR) curve is equal to the average \cost (AC) curve.
D. The firm is producing at a level of output where the average revenue (AR) curve is below the average \cost (AC) curve.
Correct Answer
B
Correct Option:
The firm is producing at a level of output where the average revenue (AR) curve is above the average \cost (AC) curve.

About This Question

This is Post Utme Lasu 2019 Economics Question 6. It is one of the objective questions from the 2019 Post Utme Lasu Economics examination.

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