Post Utme Uniport 2021 Economics Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Uniport Economics examination.

Post Utme Uniport 2021 Economics Objective / Multiple Choice
Question 6 POST_UTME_UNIPORT • 2021 • ECONOMICS • objective

Consider a monopolistically competitive firm in the short run. If the firm's average total \cost curve intersects its marginal revenue curve at a point where the firm is operating at a loss, what is the likely cause of this loss?

Answer Options

Correct Answer A. The firm has a high fixed \cost.
B. The firm has a low elasticity of demand.
C. The firm has a high marginal \cost.
D. The firm has a low marginal revenue.
Correct Answer
A
Correct Option:
The firm has a high fixed \cost.

About This Question

This is Post Utme Uniport 2021 Economics Question 6. It is one of the objective questions from the 2021 Post Utme Uniport Economics examination.

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