Post Utme Caleb University 2025 Commerce Question 16

Practice objective / multiple choice question 16 from the 2025 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2025 Commerce Objective / Multiple Choice
Question 16 POST_UTME_CALEB_UNIVERSITY • 2025 • COMMERCE • objective

In a perfectly competitive market, the supply curve is downward sloping due to the law of increasing marginal opportunity costs. However, in a monopolistically competitive market, the supply curve is also downward sloping, but for a different reason. What is the primary reason for the downward sloping supply curve in a monopolistically competitive market?

Answer Options

A. The law of increasing marginal opportunity costs
Correct Answer B. The presence of advertising and product differentiation
C. The presence of barriers to entry
D. The presence of economies of scale
Correct Answer
B
Correct Option:
The presence of advertising and product differentiation

About This Question

This is Post Utme Caleb University 2025 Commerce Question 16. It is one of the objective questions from the 2025 Post Utme Caleb University Commerce examination.

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