Post Utme Uniport 2017 Economics Question 26

Practice objective / multiple choice question 26 from the 2017 Post Utme Uniport Economics examination.

Post Utme Uniport 2017 Economics Objective / Multiple Choice
Question 26 POST_UTME_UNIPORT • 2017 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at a point where MR = AVC, what is the likely outcome for the firm's profit-maximizing output level?

Answer Options

A. The firm will produce at the point where MR = MC.
Correct Answer B. The firm will produce at the point where MR = AVC.
C. The firm will produce at the point where MR = ATC.
D. The firm will produce at the point where MR = AFC.
Correct Answer
B
Correct Option:
The firm will produce at the point where MR = AVC.

About This Question

This is Post Utme Uniport 2017 Economics Question 26. It is one of the objective questions from the 2017 Post Utme Uniport Economics examination.

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