Post Utme Oau 2023 Economics Question 30

Practice objective / multiple choice question 30 from the 2023 Post Utme Oau Economics examination.

Post Utme Oau 2023 Economics Objective / Multiple Choice

Question 30 POST_UTME_OAU • 2023 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the price elasticity of demand (PED) is 2, what is the firm's optimal output level?

Correct Answer A. \( Q^* = \frac{MR}{PED} \)

B. \( Q^* = \frac{MC}{PED} \)

C. \( Q^* = \frac{MR}{MC} \)

D. \( Q^* = PED \times MC \)

Correct Answer

Correct Option:

\( Q^* = \frac{MR}{PED} \)

This is Post Utme Oau 2023 Economics Question 30. It is one of the objective questions from the 2023 Post Utme Oau Economics examination.

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