Post Utme Lead City University 2021 Economics Question 17

Practice objective / multiple choice question 17 from the 2021 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2021 Economics Objective / Multiple Choice
Question 17 POST_UTME_LEAD_CITY_UNIVERSITY • 2021 • ECONOMICS • objective

A firm is producing a good at a level where the marginal revenue (MR) is equal to the marginal \cost (MC). However, the firm is not maximizing its profit. Explain why the firm is not maximizing its profit.

Answer Options

A. The firm is producing at a level where the average revenue (AR) is greater than the average \cost (AC).
Correct Answer B. The firm is producing at a level where the marginal revenue (MR) is less than the marginal \cost (MC).
C. The firm is producing at a level where the total revenue (TR) is greater than the total \cost (TC).
D. The firm is producing at a level where the marginal revenue (MR) is equal to the marginal \cost (MC).
Correct Answer
B
Correct Option:
The firm is producing at a level where the marginal revenue (MR) is less than the marginal \cost (MC).

About This Question

This is Post Utme Lead City University 2021 Economics Question 17. It is one of the objective questions from the 2021 Post Utme Lead City University Economics examination.

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