Post Utme Rsu 2023 Economics Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Rsu Economics examination.

Post Utme Rsu 2023 Economics Objective / Multiple Choice
Question 16 POST_UTME_RSU • 2023 • ECONOMICS • objective

A firm operating in a perfectly competitive market produces a homogeneous product. If the firm's average total \cost (ATC) curve intersects its marginal \cost (MC) curve at a point where MC < ATC, what is the likely outcome for the firm's profit?

Answer Options

A. The firm will increase its production to maximize profit.
Correct Answer B. The firm will decrease its production to minimize loss.
C. The firm will operate at a loss.
D. The firm will break even.
Correct Answer
B
Correct Option:
The firm will decrease its production to minimize loss.

About This Question

This is Post Utme Rsu 2023 Economics Question 16. It is one of the objective questions from the 2023 Post Utme Rsu Economics examination.

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