Post Utme Ui 2018 Economics Question 22

Practice objective / multiple choice question 22 from the 2018 Post Utme Ui Economics examination.

Post Utme Ui 2018 Economics Objective / Multiple Choice

Question 22 POST_UTME_UI • 2018 • ECONOMICS • objective

A monopolistically competitive firm faces a downward-sloping demand curve. If the firm's average total \cost curve is U-shaped, what will happen to the firm's profit-maximizing output?

A. The firm will produce at the minimum point of the average total \cost curve.

Correct Answer B. The firm will produce at the point where the marginal revenue curve intersects the marginal \cost curve.

C. The firm will produce at the maximum point of the average total \cost curve.

D. The firm will produce at the point where the demand curve intersects the average total \cost curve.

Correct Answer

Correct Option:

The firm will produce at the point where the marginal revenue curve intersects the marginal \cost curve.

This is Post Utme Ui 2018 Economics Question 22. It is one of the objective questions from the 2018 Post Utme Ui Economics examination.

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