Post Utme Osustech 2019 Economics Question 7

Practice objective / multiple choice question 7 from the 2019 Post Utme Osustech Economics examination.

Post Utme Osustech 2019 Economics Objective / Multiple Choice
Question 7 POST_UTME_OSUSTECH • 2019 • ECONOMICS • objective

A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect of this tax on the firm's profit-maximizing output and price?

Answer Options

A. The firm's profit-maximizing output and price increase.
Correct Answer B. The firm's profit-maximizing output and price decrease.
C. The firm's profit-maximizing output increases, but the price decreases.
D. The firm's profit-maximizing output decreases, but the price increases.
Correct Answer
B
Correct Option:
The firm's profit-maximizing output and price decrease.

About This Question

This is Post Utme Osustech 2019 Economics Question 7. It is one of the objective questions from the 2019 Post Utme Osustech Economics examination.

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