Post Utme Christopher University 2022 Commerce Question 38

Practice objective / multiple choice question 38 from the 2022 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2022 Commerce Objective / Multiple Choice
Question 38 POST_UTME_CHRISTOPHER_UNIVERSITY • 2022 • COMMERCE • objective

A firm's marginal revenue product (MRP) is the change in total revenue resulting from a one-unit increase in the quantity of a variable input. Explain why the MRP curve is downward sloping in the case of a perfectly competitive market.

Answer Options

A. Because the MRP curve is downward sloping due to the law of increasing opportunity cost.
B. Because the MRP curve is downward sloping due to the law of diminishing returns.
Correct Answer C. Because the MRP curve is downward sloping due to the firm's inability to influence the market price.
D. Because the MRP curve is downward sloping due to the firm's inability to influence the market quantity.
Correct Answer
C
Correct Option:
Because the MRP 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 38. It is one of the objective questions from the 2022 Post Utme Christopher University Commerce examination.

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