Post Utme Bowen University 2019 Economics Question 7

Practice objective / multiple choice question 7 from the 2019 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2019 Economics Objective / Multiple Choice
Question 7 POST_UTME_BOWEN_UNIVERSITY • 2019 • ECONOMICS • objective

A firm is operating in a perfectly competitive market. The firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied and P is the price. U\sing the concept of supply and demand, explain why the firm is operating in a perfectly competitive market.

Answer Options

Correct Answer A. The firm is operating in a perfectly competitive market because the demand curve is downward-sloping and the supply curve is upward-sloping.
B. The firm is operating in a perfectly competitive market because the demand curve is upward-sloping and the supply curve is downward-sloping.
C. The firm is operating in a perfectly competitive market because the demand curve is horizontal and the supply curve is vertical.
D. The firm is operating in a perfectly competitive market because the demand curve is vertical and the supply curve is horizontal.
Correct Answer
A
Correct Option:
The firm is operating in a perfectly competitive market because the demand curve is downward-sloping and the supply curve is upward-sloping.

About This Question

This is Post Utme Bowen University 2019 Economics Question 7. It is one of the objective questions from the 2019 Post Utme Bowen University Economics examination.

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