Post Utme Elizade University 2018 Commerce Question 16

Practice objective / multiple choice question 16 from the 2018 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2018 Commerce Objective / Multiple Choice
Question 16 POST_UTME_ELIZADE_UNIVERSITY • 2018 • 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 monopoly, the supply curve is downward-sloping due to the law of diminishing marginal returns. Which of the following best describes the relationship between the two laws?

Answer Options

A. The law of increasing marginal opportunity costs is a result of the law of diminishing marginal returns.
B. The law of diminishing marginal returns is a result of the law of increasing marginal opportunity costs.
Correct Answer C. The law of increasing marginal opportunity costs is a separate concept from the law of diminishing marginal returns.
D. The law of diminishing marginal returns is a result of the law of increasing marginal opportunity costs in the short run, but not in the long run.
Correct Answer
C
Correct Option:
The law of increasing marginal opportunity costs is a separate concept from the law of diminishing marginal returns.

About This Question

This is Post Utme Elizade University 2018 Commerce Question 16. It is one of the objective questions from the 2018 Post Utme Elizade University Commerce examination.

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