Post Utme Ui 2021 Economics Question 14

Practice objective / multiple choice question 14 from the 2021 Post Utme Ui Economics examination.

Post Utme Ui 2021 Economics Objective / Multiple Choice
Question 14 POST_UTME_UI • 2021 • ECONOMICS • objective

A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect of this tax on the firm's profit-maximizing quantity?

Answer Options

A. The firm's profit-maximizing quantity increases
Correct Answer B. The firm's profit-maximizing quantity decreases
C. The firm's profit-maximizing quantity remains the same
D. The firm's profit-maximizing quantity increases and then decreases
Correct Answer
B
Correct Option:
The firm's profit-maximizing quantity decreases

About This Question

This is Post Utme Ui 2021 Economics Question 14. It is one of the objective questions from the 2021 Post Utme Ui Economics examination.

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