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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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