Post Utme Covenant University 2023 Commerce Question 26

Practice objective / multiple choice question 26 from the 2023 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2023 Commerce Objective / Multiple Choice
Question 26 POST_UTME_COVENANT_UNIVERSITY • 2023 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing marginal opportunity costs. However, in a market with a single firm, the supply curve is downward-sloping due to the law of decreasing marginal costs. What is the primary reason for this difference in supply curve slopes?

Answer Options

A. The presence of a single firm leads to economies of scale.
B. The single firm has a fixed cost that increases with output.
C. The single firm faces a downward-sloping demand curve.
Correct Answer D. The single firm has a higher marginal cost than a perfectly competitive firm.
Correct Answer
D
Correct Option:
The single firm has a higher marginal cost than a perfectly competitive firm.

About This Question

This is Post Utme Covenant University 2023 Commerce Question 26. It is one of the objective questions from the 2023 Post Utme Covenant University Commerce examination.

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