Post Utme Pan Atlantic University 2021 Economics Question 1

Practice objective / multiple choice question 1 from the 2021 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2021 Economics Objective / Multiple Choice
Question 1 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2021 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) 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 price?

Answer Options

Correct Answer A. The firm's profit-maximizing price is equal to the market price.
B. The firm's profit-maximizing price is greater than the market price.
C. The firm's profit-maximizing price is less than the market price.
D. The firm's profit-maximizing price is zero.
Correct Answer
A
Correct Option:
The firm's profit-maximizing price is equal to the market price.

About This Question

This is Post Utme Pan Atlantic University 2021 Economics Question 1. It is one of the objective questions from the 2021 Post Utme Pan Atlantic University Economics examination.

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