Post Utme Osustech 2021 Economics Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Osustech Economics examination.

Post Utme Osustech 2021 Economics Objective / Multiple Choice
Question 21 POST_UTME_OSUSTECH • 2021 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a given demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at a point where MR > AVC, what is the likely outcome for the firm's profit?

Answer Options

Correct Answer A. The firm will increase production to maximize profit.
B. The firm will decrease production to minimize losses.
C. The firm will remain at the current level of production.
D. The firm will exit the market.
Correct Answer
A
Correct Option:
The firm will increase production to maximize profit.

About This Question

This is Post Utme Osustech 2021 Economics Question 21. It is one of the objective questions from the 2021 Post Utme Osustech Economics examination.

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