Post Utme Christopher University 2022 Commerce Question 39

Practice objective / multiple choice question 39 from the 2022 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2022 Commerce Objective / Multiple Choice
Question 39 POST_UTME_CHRISTOPHER_UNIVERSITY • 2022 • COMMERCE • objective

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

Answer Options

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

About This Question

This is Post Utme Christopher University 2022 Commerce Question 39. It is one of the objective questions from the 2022 Post Utme Christopher University Commerce examination.

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