Post Utme Oau 2019 Commerce Question 6

Practice objective / multiple choice question 6 from the 2019 Post Utme Oau Commerce examination.

Post Utme Oau 2019 Commerce Objective / Multiple Choice

Question 6 POST_UTME_OAU • 2019 • COMMERCE • objective

In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this on the firm's profit-maximizing output?

A. The firm will produce at the minimum point of the average total cost curve.

Correct Answer B. The firm will produce at the point where marginal revenue equals marginal cost.

C. The firm will produce at the point where the demand curve intersects the average revenue curve.

D. The firm will produce at the point where the supply curve intersects the demand curve.

Correct Answer

Correct Option:

The firm will produce at the point where marginal revenue equals marginal cost.

This is Post Utme Oau 2019 Commerce Question 6. It is one of the objective questions from the 2019 Post Utme Oau Commerce examination.

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