Post Utme Uniosun 2025 Economics Question 1

Practice objective / multiple choice question 1 from the 2025 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2025 Economics Objective / Multiple Choice
Question 1 POST_UTME_UNIOSUN • 2025 • ECONOMICS • objective

A firm's average total \cost curve intersects its average variable \cost curve at a point where the firm's marginal \cost is equal to its average total \cost. What is the implication of this point for the firm's production decision?

Answer Options

A. The firm is producing at its optimal level of output.
B. The firm is producing at a level of output where its marginal \cost is greater than its average total \cost.
Correct Answer C. The firm is producing at a level of output where its marginal \cost is less than its average total \cost.
D. The firm is producing at a level of output where its marginal \cost is equal to its average variable \cost.
Correct Answer
C
Correct Option:
The firm is producing at a level of output where its marginal \cost is less than its average total \cost.

About This Question

This is Post Utme Uniosun 2025 Economics Question 1. It is one of the objective questions from the 2025 Post Utme Uniosun Economics examination.

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