Post Utme Rhema University 2022 Economics Question 21

Practice objective / multiple choice question 21 from the 2022 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2022 Economics Objective / Multiple Choice

Question 21 POST_UTME_RHEMA_UNIVERSITY • 2022 • ECONOMICS • objective

A firm is a price-taker in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

Answer Options

Correct Answer A. The firm will increase its output.

B. The firm will decrease its output.

C. The firm's output will remain unchanged.

D. The firm will exit the market.

Correct Answer

Correct Option:

The firm will increase its output.

About This Question

This is Post Utme Rhema University 2022 Economics Question 21. It is one of the objective questions from the 2022 Post Utme Rhema University Economics examination.

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