Post Utme Abu 2018 Economics Question 2

Practice objective / multiple choice question 2 from the 2018 Post Utme Abu Economics examination.

Post Utme Abu 2018 Economics Objective / Multiple Choice
Question 2 POST_UTME_ABU • 2018 • ECONOMICS • objective

A monopolistically competitive firm faces a downward-sloping demand curve due to product differentiation. Which of the following is a characteristic of a monopolistically competitive market?

Answer Options

A. Firms in a monopolistically competitive market produce homogeneous products.
B. Firms in a monopolistically competitive market face a perfectly elastic demand curve.
Correct Answer C. Firms in a monopolistically competitive market have a high degree of product differentiation.
D. Firms in a monopolistically competitive market produce a \single product.
Correct Answer
C
Correct Option:
Firms in a monopolistically competitive market have a high degree of product differentiation.

About This Question

This is Post Utme Abu 2018 Economics Question 2. It is one of the objective questions from the 2018 Post Utme Abu Economics examination.

View More Post Utme Abu 2018 Economics Questions More Post Utme Abu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support