JAMB Economics 2014 Objective — Question 22
Question 22 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2014 Objective paper, with the correct answer and a full explanation.
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A perfect competitor will continue to expand output up to the point where
- A. MC>MR
- B. TC>TR
- C. MR=ARCorrect
- D. MC<MR
Explanation
Expansion of output stops at MC=MR — where marginal cost equals marginal revenue (also equal to average revenue in a perfectly competitive market).
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