Post Utme Summit University 2019 Economics Question 26

Practice objective / multiple choice question 26 from the 2019 Post Utme Summit University Economics examination.

Post Utme Summit University 2019 Economics Objective / Multiple Choice
Question 26 POST_UTME_SUMMIT_UNIVERSITY • 2019 • ECONOMICS • objective

A firm's average total \cost curve intersects its average variable \cost curve at a point where the firm's marginal \cost curve is equal to its average total \cost curve. What is the economic implication of this point?

Answer Options

A. The firm is operating at its minimum efficient scale.
Correct Answer B. The firm is operating at its maximum efficient scale.
C. The firm is experiencing increa\sing returns to scale.
D. The firm is experiencing decrea\sing returns to scale.
Correct Answer
B
Correct Option:
The firm is operating at its maximum efficient scale.

About This Question

This is Post Utme Summit University 2019 Economics Question 26. It is one of the objective questions from the 2019 Post Utme Summit University Economics examination.

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