Post Utme Rsu 2017 Economics Question 13

Practice objective / multiple choice question 13 from the 2017 Post Utme Rsu Economics examination.

Post Utme Rsu 2017 Economics Objective / Multiple Choice

Question 13 POST_UTME_RSU • 2017 • ECONOMICS • objective

A monopolist faces a downward-sloping demand curve. What is the correct explanation for the firm's decision to produce at a point where the marginal revenue equals the marginal \cost?

Correct Answer A. The firm is maximizing its profits by producing at the point where the marginal revenue equals the marginal \cost.

B. The firm is minimizing its \costs by producing at the point where the marginal revenue equals the marginal \cost.

C. The firm is producing at the point where the demand curve intersects the supply curve.

D. The firm is producing at the point where the marginal revenue equals the average revenue.

Correct Answer

Correct Option:

The firm is maximizing its profits by producing at the point where the marginal revenue equals the marginal \cost.

This is Post Utme Rsu 2017 Economics Question 13. It is one of the objective questions from the 2017 Post Utme Rsu Economics examination.

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