Post Utme Lead City University 2019 Economics Question 16

Practice objective / multiple choice question 16 from the 2019 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2019 Economics Objective / Multiple Choice
Question 16 POST_UTME_LEAD_CITY_UNIVERSITY • 2019 • ECONOMICS • objective

In a perfectly competitive market, a firm's short-run supply curve is a horizontal line at the minimum point of its average total \cost curve. What is the implication of this for the firm's profit-maximizing output level?

Answer Options

A. The firm will produce at the minimum point of its average total \cost curve.
Correct Answer B. The firm will produce at the level of output where price equals marginal \cost.
C. The firm will produce at the level of output where price equals average total \cost.
D. The firm will produce at the level of output where price equals average variable \cost.
Correct Answer
B
Correct Option:
The firm will produce at the level of output where price equals marginal \cost.

About This Question

This is Post Utme Lead City University 2019 Economics Question 16. It is one of the objective questions from the 2019 Post Utme Lead City University Economics examination.

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