Post Utme Christopher University 2022 Commerce Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2022 Commerce Objective / Multiple Choice
Question 36 POST_UTME_CHRISTOPHER_UNIVERSITY • 2022 • COMMERCE • objective

In a perfectly competitive market, the supply curve is downward sloping because firms are willing to produce more at a lower price due to the law of increasing opportunity cost. However, this law is not applicable in the case of a firm that is a price taker. Explain why.

Answer Options

Correct Answer A. Because the firm is a price taker and cannot influence the market price.
B. Because the firm is a price setter and can influence the market price.
C. Because the firm is a monopolist and has market power.
D. Because the firm is a monopsonist and has market power.
Correct Answer
A
Correct Option:
Because the firm is a price taker and cannot influence the market price.

About This Question

This is Post Utme Christopher University 2022 Commerce Question 36. It is one of the objective questions from the 2022 Post Utme Christopher University Commerce examination.

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