Post Utme Unilag 2020 Economics Question 10

Practice objective / multiple choice question 10 from the 2020 Post Utme Unilag Economics examination.

Post Utme Unilag 2020 Economics Objective / Multiple Choice

Question 10 POST_UTME_UNILAG • 2020 • ECONOMICS • objective

A government imposes a tax on a firm's output. If the firm's supply curve is perfectly elastic, what will be the effect on the firm's output?

Answer Options

A. The firm's output will increase.

Correct Answer B. The firm's output will decrease.

C. The firm's output will remain unchanged.

D. The firm's output will increase, but at a decrea\sing rate.

Correct Answer

Correct Option:

The firm's output will decrease.

About This Question

This is Post Utme Unilag 2020 Economics Question 10. It is one of the objective questions from the 2020 Post Utme Unilag Economics examination.

View More Post Utme Unilag 2020 Economics Questions More Post Utme Unilag Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Chat with Support