Post Utme Ui 2018 Economics Question 31

Practice objective / multiple choice question 31 from the 2018 Post Utme Ui Economics examination.

Post Utme Ui 2018 Economics Objective / Multiple Choice

Question 31 POST_UTME_UI • 2018 • ECONOMICS • objective

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is P = 10, and the marginal \cost (MC) of each firm is 5, what is the profit-maximizing quantity \( Q* \) for each firm?

Correct Answer A. \( Q^* = \frac{P - MC}{2} \)

B. \( Q^* = \frac{P + MC}{2} \)

C. \( Q^* = \frac{P - 2MC}{2} \)

D. \( Q^* = \frac{P + 2MC}{2} \)

Correct Answer

Correct Option:

\( Q^* = \frac{P - MC}{2} \)

This is Post Utme Ui 2018 Economics Question 31. It is one of the objective questions from the 2018 Post Utme Ui Economics examination.

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