Post Utme Osustech 2024 Economics Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Osustech Economics examination.

Post Utme Osustech 2024 Economics Objective / Multiple Choice
Question 16 POST_UTME_OSUSTECH • 2024 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average \cost curve intersects the demand curve at a point where the firm is producing at its optimal level of output, what is the implication for the firm's profit-maximizing output level?

Answer Options

Correct Answer A. The firm will produce at a level where its marginal revenue equals its marginal \cost.
B. The firm will produce at a level where its average revenue equals its average \cost.
C. The firm will produce at a level where its marginal revenue equals its average \cost.
D. The firm will produce at a level where its average revenue equals its marginal \cost.
Correct Answer
A
Correct Option:
The firm will produce at a level where its marginal revenue equals its marginal \cost.

About This Question

This is Post Utme Osustech 2024 Economics Question 16. It is one of the objective questions from the 2024 Post Utme Osustech Economics examination.

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