Post Utme Babcock University 2020 Commerce Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2020 Commerce Objective / Multiple Choice
Question 11 POST_UTME_BABCOCK_UNIVERSITY • 2020 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing opportunity costs. What is the opportunity cost of producing one more unit of a good?

Answer Options

Correct Answer A. The opportunity cost is the value of the next best alternative use of the resources.
B. The opportunity cost is the value of the next best alternative use of the resources, plus the cost of producing the good.
C. The opportunity cost is the value of the next best alternative use of the resources, minus the cost of producing the good.
D. The opportunity cost is the value of the next best alternative use of the resources, plus the cost of producing the good, plus the cost of transportation.
Correct Answer
A
Correct Option:
The opportunity cost is the value of the next best alternative use of the resources.

About This Question

This is Post Utme Babcock University 2020 Commerce Question 11. It is one of the objective questions from the 2020 Post Utme Babcock University Commerce examination.

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