Post Utme Osustech 2023 Economics Question 24

Practice objective / multiple choice question 24 from the 2023 Post Utme Osustech Economics examination.

Post Utme Osustech 2023 Economics Objective / Multiple Choice
Question 24 POST_UTME_OSUSTECH • 2023 • ECONOMICS • objective

A firm's average total \cost curve intersects its average fixed \cost curve at the point where the average total \cost is equal to the average fixed \cost. What is the implication of this intersection on the firm's production decision?

Answer Options

A. The firm should increase production to take advantage of economies of scale.
B. The firm should decrease production to minimize \costs.
Correct Answer C. The firm should maintain its current level of production.
D. The firm should increase production to minimize \costs.
Correct Answer
C
Correct Option:
The firm should maintain its current level of production.

About This Question

This is Post Utme Osustech 2023 Economics Question 24. It is one of the objective questions from the 2023 Post Utme Osustech Economics examination.

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