Post Utme Christopher University 2022 Commerce Question 37

Practice objective / multiple choice question 37 from the 2022 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2022 Commerce Objective / Multiple Choice
Question 37 POST_UTME_CHRISTOPHER_UNIVERSITY • 2022 • COMMERCE • objective

A firm's revenue is maximized when the marginal revenue (MR) equals the marginal cost (MC). However, in the case of a perfectly competitive market, the MR curve is downward sloping. Explain why this is the case.

Answer Options

A. Because the MR curve is downward sloping due to the law of increasing opportunity cost.
B. Because the MR curve is downward sloping due to the law of diminishing returns.
Correct Answer C. Because the MR curve is downward sloping due to the firm's inability to influence the market price.
D. Because the MR curve is downward sloping due to the firm's inability to influence the market quantity.
Correct Answer
C
Correct Option:
Because the MR curve is downward sloping due to the firm's inability to influence the market price.

About This Question

This is Post Utme Christopher University 2022 Commerce Question 37. It is one of the objective questions from the 2022 Post Utme Christopher University Commerce examination.

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