Post Utme Nile University 2017 Economics Question 36

Practice objective / multiple choice question 36 from the 2017 Post Utme Nile University Economics examination.

Post Utme Nile University 2017 Economics Objective / Multiple Choice
Question 36 POST_UTME_NILE_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average total \cost curve intersects the average revenue curve at a point where the firm is producing at the minimum of the average total \cost curve, what is the implication for the firm's profit-maximizing output?

Answer Options

Correct Answer A. The firm will produce at the minimum of the average total \cost curve.
B. The firm will produce at the maximum of the average total \cost curve.
C. The firm will produce at the minimum of the average variable \cost curve.
D. The firm will produce at the maximum of the average variable \cost curve.
Correct Answer
A
Correct Option:
The firm will produce at the minimum of the average total \cost curve.

About This Question

This is Post Utme Nile University 2017 Economics Question 36. It is one of the objective questions from the 2017 Post Utme Nile University Economics examination.

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