Post Utme Rhema University 2018 Economics Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2018 Economics Objective / Multiple Choice

Question 6 POST_UTME_RHEMA_UNIVERSITY • 2018 • ECONOMICS • objective

A perfectly competitive market has a downward-sloping demand curve and a perfectly elastic supply curve. What is the implication of this for the firm's profit-maximizing output?

Answer Options

A. The firm will produce at the minimum point of the average total \cost curve.

Correct Answer B. The firm will produce at the point where marginal revenue equals marginal \cost.

C. The firm will produce at the point where the demand curve intersects the average total \cost curve.

D. The firm will produce at the point where the supply curve intersects the average total \cost curve.

Correct Answer

Correct Option:

The firm will produce at the point where marginal revenue equals marginal \cost.

About This Question

This is Post Utme Rhema University 2018 Economics Question 6. It is one of the objective questions from the 2018 Post Utme Rhema University Economics examination.

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