Post Utme Eksu 2021 Economics Question 17

Practice objective / multiple choice question 17 from the 2021 Post Utme Eksu Economics examination.

Post Utme Eksu 2021 Economics Objective / Multiple Choice
Question 17 POST_UTME_EKSU • 2021 • ECONOMICS • objective

A monopolistically competitive firm faces a downward-sloping demand curve. What is the primary effect of this on the firm's profit-maximizing output?

Answer Options

A. The firm will produce at a higher output level.
Correct Answer B. The firm will produce at a lower output level.
C. The firm's profit-maximizing output will be unaffected.
D. The firm will produce at an output level that is between the perfectly competitive and monopolistic output levels.
Correct Answer
B
Correct Option:
The firm will produce at a lower output level.

About This Question

This is Post Utme Eksu 2021 Economics Question 17. It is one of the objective questions from the 2021 Post Utme Eksu Economics examination.

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