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WAEC Economics 1993 Question 29

Question 29

Market Structures

The main objective of production by an entrepreneur is to

  1. A.equate marginal revenue with marginal cost
  2. B.provide employment opportunities
  3. C.equate total revenue with total cost
  4. D.equate average revenue with average cost
  5. E.accumulate wealth for the nation.
Show the answer and explanation

Answer: A (equate marginal revenue with marginal cost)

Explanation

An entrepreneur aims to maximise profit, which happens where marginal revenue equals marginal cost.