Post Utme Lautech 2022 Economics Question 11

Practice objective / multiple choice question 11 from the 2022 Post Utme Lautech Economics examination.

Post Utme Lautech 2022 Economics Objective / Multiple Choice
Question 11 POST_UTME_LAUTECH • 2022 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point A, and the price elasticity of demand (PED) is 2, what is the likely effect on the firm's output and price?

Answer Options

Correct Answer A. The firm will increase output and decrease price.
B. The firm will decrease output and increase price.
C. The firm will increase output and increase price.
D. The firm will decrease output and decrease price.
Correct Answer
A
Correct Option:
The firm will increase output and decrease price.

About This Question

This is Post Utme Lautech 2022 Economics Question 11. It is one of the objective questions from the 2022 Post Utme Lautech Economics examination.

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