Post Utme Achievers University 2024 Commerce Question 26

Practice objective / multiple choice question 26 from the 2024 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2024 Commerce Objective / Multiple Choice
Question 26 POST_UTME_ACHIEVERS_UNIVERSITY • 2024 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. However, in a monopolistically competitive market, the supply curve is also upward-sloping due to the presence of advertising and product differentiation. Which of the following best describes the difference between the two supply curves?

Answer Options

A. The supply curve in a monopolistically competitive market is more elastic than in a perfectly competitive market.
Correct Answer B. The supply curve in a monopolistically competitive market is less elastic than in a perfectly competitive market.
C. The supply curve in a monopolistically competitive market is vertical, while the supply curve in a perfectly competitive market is horizontal.
D. The supply curve in a monopolistically competitive market is downward-sloping, while the supply curve in a perfectly competitive market is upward-sloping.
Correct Answer
B
Correct Option:
The supply curve in a monopolistically competitive market is less elastic than in a perfectly competitive market.

About This Question

This is Post Utme Achievers University 2024 Commerce Question 26. It is one of the objective questions from the 2024 Post Utme Achievers University Commerce examination.

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