Post Utme Afe Babalola University 2023 Economics Question 31

Practice objective / multiple choice question 31 from the 2023 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2023 Economics Objective / Multiple Choice
Question 31 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2023 • ECONOMICS • objective

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the relationship between the market supply curve and the individual firm's supply curve?

Answer Options

A. The market supply curve is steeper than the individual firm's supply curve.
B. The market supply curve is flatter than the individual firm's supply curve.
Correct Answer C. The market supply curve is identical to the individual firm's supply curve.
D. The market supply curve is vertical while the individual firm's supply curve is horizontal.
Correct Answer
C
Correct Option:
The market supply curve is identical to the individual firm's supply curve.

About This Question

This is Post Utme Afe Babalola University 2023 Economics Question 31. It is one of the objective questions from the 2023 Post Utme Afe Babalola University Economics examination.

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