Post Utme Unn 2018 Economics Question 16

Practice objective / multiple choice question 16 from the 2018 Post Utme Unn Economics examination.

Post Utme Unn 2018 Economics Objective / Multiple Choice
Question 16 POST_UTME_UNN • 2018 • ECONOMICS • objective

A firm's average total \cost curve intersects its marginal \cost curve at point E, where MC = ATC. If the firm is currently producing at point D, where MC > ATC, what will be the effect on the firm's average total \cost?

Answer Options

A. The average total \cost will decrease.
Correct Answer B. The average total \cost will increase.
C. The average total \cost will remain unchanged.
D. The average total \cost will first decrease and then increase.
Correct Answer
B
Correct Option:
The average total \cost will increase.

About This Question

This is Post Utme Unn 2018 Economics Question 16. It is one of the objective questions from the 2018 Post Utme Unn Economics examination.

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