Post Utme Unilag 2020 Economics Question 6

Practice objective / multiple choice question 6 from the 2020 Post Utme Unilag Economics examination.

Post Utme Unilag 2020 Economics Objective / Multiple Choice
Question 6 POST_UTME_UNILAG • 2020 • ECONOMICS • objective

Consider a firm that operates in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

Answer Options

Correct Answer A. The firm will increase its output.
B. The firm will decrease its output.
C. The firm's output will remain unchanged.
D. The firm's output will increase, but at a decrea\sing rate.
Correct Answer
A
Correct Option:
The firm will increase its output.

About This Question

This is Post Utme Unilag 2020 Economics Question 6. It is one of the objective questions from the 2020 Post Utme Unilag Economics examination.

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