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JAMB Economics 1990 Question 9

Question 9

Market Structures

At the point of profit maximization by a firm, marginal cost is

  1. A.minimum
  2. B.falling
  3. C.constant
  4. D.rising
Show the answer and explanation

Answer: D (rising)

Explanation

Profit is maximised where MC = MR and MC cuts MR from below, so MC is rising at that point.