Post Utme Osustech 2017 Economics Question 21

Practice objective / multiple choice question 21 from the 2017 Post Utme Osustech Economics examination.

Post Utme Osustech 2017 Economics Objective / Multiple Choice
Question 21 POST_UTME_OSUSTECH • 2017 • 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, and the price elasticity of demand is unit elastic at point E, what is the likely effect on the firm's output and price?

Answer Options

Correct Answer A. The firm will increase output and decrease price.
B. The firm will decrease output and increase price.
C. The firm will increase output and increase price.
D. The firm will decrease output and decrease price.
Correct Answer
A
Correct Option:
The firm will increase output and decrease price.

About This Question

This is Post Utme Osustech 2017 Economics Question 21. It is one of the objective questions from the 2017 Post Utme Osustech Economics examination.

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