Post Utme Mountain Top University 2019 Economics Question 26

Practice objective / multiple choice question 26 from the 2019 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2019 Economics Objective / Multiple Choice
Question 26 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve is downward-sloping, what is the relationship between the firm's marginal \cost (MC) curve and its average total \cost (ATC) curve?

Answer Options

A. MC curve intersects ATC curve at the minimum point of the ATC curve
B. MC curve lies above the ATC curve
Correct Answer C. MC curve lies below the ATC curve
D. MC curve intersects ATC curve at the maximum point of the ATC curve
Correct Answer
C
Correct Option:
MC curve lies below the ATC curve

About This Question

This is Post Utme Mountain Top University 2019 Economics Question 26. It is one of the objective questions from the 2019 Post Utme Mountain Top University Economics examination.

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