Post Utme Mountain Top University 2018 Economics Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2018 Economics Objective / Multiple Choice
Question 1 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2018 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given supply curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will happen to the firm's profit-maximizing output?

Answer Options

Correct Answer A. The firm will increase its output to maximize profits.
B. The firm will decrease its output to minimize losses.
C. The firm will maintain its current output level.
D. The firm will exit the market.
Correct Answer
A
Correct Option:
The firm will increase its output to maximize profits.

About This Question

This is Post Utme Mountain Top University 2018 Economics Question 1. It is one of the objective questions from the 2018 Post Utme Mountain Top University Economics examination.

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