Post Utme Caleb University 2024 Commerce Question 21

Practice objective / multiple choice question 21 from the 2024 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2024 Commerce Objective / Multiple Choice
Question 21 POST_UTME_CALEB_UNIVERSITY • 2024 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?

Answer Options

A. The law of increasing costs is due to the fixed nature of production costs.
B. The law of increasing costs is due to the variable nature of production costs.
Correct Answer C. The law of increasing costs is due to the increasing marginal cost of production.
D. The law of increasing costs is due to the decreasing marginal revenue of production.
Correct Answer
C
Correct Option:
The law of increasing costs is due to the increasing marginal cost of production.

About This Question

This is Post Utme Caleb University 2024 Commerce Question 21. It is one of the objective questions from the 2024 Post Utme Caleb University Commerce examination.

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