Post Utme Unilorin 2019 Economics Question 36

Practice objective / multiple choice question 36 from the 2019 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2019 Economics Objective / Multiple Choice
Question 36 POST_UTME_UNILORIN • 2019 • ECONOMICS • objective

Consider a perfectly competitive market with 5 firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the likely outcome for the firms?

Answer Options

A. All firms will increase production to maximize profits.
B. Some firms will exit the market due to low demand.
Correct Answer C. Firms will produce at the point where MR = MC.
D. Firms will collude to fix prices.
Correct Answer
C
Correct Option:
Firms will produce at the point where MR = MC.

About This Question

This is Post Utme Unilorin 2019 Economics Question 36. It is one of the objective questions from the 2019 Post Utme Unilorin Economics examination.

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