Post Utme Unn 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Unn Economics examination.

Post Utme Unn 2020 Economics Objective / Multiple Choice

Question 21 POST_UTME_UNN • 2020 • ECONOMICS • objective

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is P = 10, and the marginal \cost (MC) of each firm is 5, what is the profit-maximizing quantity \( Q* \) for each firm?

Correct Answer A. \( Q^* = \frac{P - MC}{2} \)

B. \( Q^* = \frac{P + MC}{2} \)

C. \( Q^* = \frac{P - MC}{MC} \)

D. \( Q^* = \frac{P + MC}{MC} \)

Correct Answer

Correct Option:

\( Q^* = \frac{P - MC}{2} \)

This is Post Utme Unn 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Unn Economics examination.

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