Post Utme Abu 2022 Economics Question 6

Practice objective / multiple choice question 6 from the 2022 Post Utme Abu Economics examination.

Post Utme Abu 2022 Economics Objective / Multiple Choice

Question 6 POST_UTME_ABU • 2022 • ECONOMICS • objective

Consider a perfectly competitive market with a large number of firms producing a homogeneous product. If the market price falls, what will happen to the marginal revenue of each firm?

A. Marginal revenue will increase

Correct Answer B. Marginal revenue will decrease

C. Marginal revenue will remain unchanged

D. Marginal revenue will become negative

Correct Answer

Correct Option:

Marginal revenue will decrease

This is Post Utme Abu 2022 Economics Question 6. It is one of the objective questions from the 2022 Post Utme Abu Economics examination.

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