Post Utme Covenant University 2024 Commerce Question 31

Practice objective / multiple choice question 31 from the 2024 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2024 Commerce Objective / Multiple Choice
Question 31 POST_UTME_COVENANT_UNIVERSITY • 2024 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?

Answer Options

Correct Answer A. Increasing marginal costs due to the law of diminishing returns
B. Decreasing marginal costs due to the law of increasing returns
C. Constant marginal costs due to the law of constant returns
D. Variable costs are increasing due to the law of increasing costs
Correct Answer
A
Correct Option:
Increasing marginal costs due to the law of diminishing returns

About This Question

This is Post Utme Covenant University 2024 Commerce Question 31. It is one of the objective questions from the 2024 Post Utme Covenant University Commerce examination.

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