Post Utme Uniosun 2021 Economics Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2021 Economics Objective / Multiple Choice
Question 21 POST_UTME_UNIOSUN • 2021 • ECONOMICS • objective

A firm's average \cost curve is U-shaped. If the firm is currently operating at a point on the curve where the marginal \cost (MC) is equal to the average \cost (AC), what can be concluded about the firm's production level?

Answer Options

A. The firm is producing at its minimum efficient scale.
B. The firm is producing at its maximum efficient scale.
C. The firm is producing at a point where the law of diminishing marginal returns is applicable.
Correct Answer D. The firm is producing at a point where the law of increa\sing marginal returns is applicable.
Correct Answer
D
Correct Option:
The firm is producing at a point where the law of increa\sing marginal returns is applicable.

About This Question

This is Post Utme Uniosun 2021 Economics Question 21. It is one of the objective questions from the 2021 Post Utme Uniosun Economics examination.

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