Post Utme Caleb University 2019 Economics Question 7

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

Post Utme Caleb University 2019 Economics Objective / Multiple Choice
Question 7 POST_UTME_CALEB_UNIVERSITY • 2019 • ECONOMICS • objective

A monopolistically competitive firm faces a demand curve that is downward sloping. If the firm increases its output, what happens to its price?

Answer Options

A. The price increases.
Correct Answer B. The price decreases.
C. The price remains the same.
D. The price becomes perfectly inelastic.
Correct Answer
B
Correct Option:
The price decreases.

About This Question

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

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