Post Utme Al Hikmah University 2020 Commerce Question 34

Practice objective / multiple choice question 34 from the 2020 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2020 Commerce Objective / Multiple Choice
Question 34 POST_UTME_AL-HIKMAH_UNIVERSITY • 2020 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm. What is the likely outcome for the firm's production level?

Answer Options

A. Increase production to maximize profits
Correct Answer B. Decrease production to minimize losses
C. Maintain current production level
D. Increase production to meet increasing demand
Correct Answer
B
Correct Option:
Decrease production to minimize losses

About This Question

This is Post Utme Al Hikmah University 2020 Commerce Question 34. It is one of the objective questions from the 2020 Post Utme Al Hikmah University Commerce examination.

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