Post Utme Rhema University 2023 Economics Question 8

Practice objective / multiple choice question 8 from the 2023 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2023 Economics Objective / Multiple Choice
Question 8 POST_UTME_RHEMA_UNIVERSITY • 2023 • ECONOMICS • objective

A monopolistically competitive firm faces a downward-sloping demand curve. U\sing the concept of marginal revenue, explain why the firm will produce at the level where MR = MC.

Answer Options

Correct Answer A. The firm will produce at the level where MR = MC because it maximizes profit.
B. The firm will produce at the level where MR = MC because it minimizes \cost.
C. The firm will produce at the level where MR = MC because it faces a downward-sloping demand curve.
D. The firm will produce at the level where MR = MC because it is a monopolistically competitive firm.
Correct Answer
A
Correct Option:
The firm will produce at the level where MR = MC because it maximizes profit.

About This Question

This is Post Utme Rhema University 2023 Economics Question 8. It is one of the objective questions from the 2023 Post Utme Rhema University Economics examination.

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