Post Utme Eksu 2021 Economics Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Eksu Economics examination.

Post Utme Eksu 2021 Economics Objective / Multiple Choice
Question 16 POST_UTME_EKSU • 2021 • ECONOMICS • objective

In a perfectly competitive market, the law of diminishing marginal returns is not applicable. What is the primary reason for this?

Answer Options

A. The law of diminishing marginal returns is a characteristic of the production function.
B. The law of diminishing marginal returns is not relevant in the short run.
Correct Answer C. The law of diminishing marginal returns is not applicable in a perfectly competitive market because firms can easily enter or exit the market.
D. The law of diminishing marginal returns is not applicable in a perfectly competitive market because firms produce homogeneous products.
Correct Answer
C
Correct Option:
The law of diminishing marginal returns is not applicable in a perfectly competitive market because firms can easily enter or exit the market.

About This Question

This is Post Utme Eksu 2021 Economics Question 16. It is one of the objective questions from the 2021 Post Utme Eksu Economics examination.

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