Post Utme Rsu 2017 Economics Question 11

Practice objective / multiple choice question 11 from the 2017 Post Utme Rsu Economics examination.

Post Utme Rsu 2017 Economics Objective / Multiple Choice

Question 11 POST_UTME_RSU • 2017 • ECONOMICS • objective

A firm operating under perfect competition will experience a decrease in its average revenue curve if it increases its price. What is the correct explanation for this phenomenon?

Correct Answer A. The firm's increase in price leads to a decrease in the quantity demanded, resulting in a decrease in total revenue.

B. The firm's increase in price leads to an increase in the quantity demanded, resulting in an increase in total revenue.

C. The firm's increase in price leads to a decrease in the quantity supplied, resulting in a decrease in total revenue.

D. The firm's increase in price leads to an increase in the quantity supplied, resulting in an increase in total revenue.

Correct Answer

Correct Option:

The firm's increase in price leads to a decrease in the quantity demanded, resulting in a decrease in total revenue.

This is Post Utme Rsu 2017 Economics Question 11. It is one of the objective questions from the 2017 Post Utme Rsu Economics examination.

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