Post Utme Unn 2025 Economics Question 12

Practice objective / multiple choice question 12 from the 2025 Post Utme Unn Economics examination.

Post Utme Unn 2025 Economics Objective / Multiple Choice
Question 12 POST_UTME_UNN • 2025 • ECONOMICS • objective

A monopolistically competitive firm faces a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what is the implication for the firm's output and price?

Answer Options

Correct Answer A. The firm is producing at its profit-maximizing level of output.
B. The firm is producing at its minimum point on the average total \cost (ATC) curve.
C. The firm is producing at its maximum point on the marginal revenue product (MRP) curve.
D. The firm is producing at its break-even point.
Correct Answer
A
Correct Option:
The firm is producing at its profit-maximizing level of output.

About This Question

This is Post Utme Unn 2025 Economics Question 12. It is one of the objective questions from the 2025 Post Utme Unn Economics examination.

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