Post Utme Elizade University 2018 Commerce Question 32

Practice objective / multiple choice question 32 from the 2018 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2018 Commerce Objective / Multiple Choice
Question 32 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 cost. However, this law is not applicable in the case of a firm that is a price-taker. Explain why.

Answer Options

Correct Answer A. Because the firm is a price-taker and cannot influence the market price.
B. Because the firm is a price-maker and can influence the market price.
C. Because the firm is a monopolist and has market power.
D. Because the firm is a monopsonist and has market power.
Correct Answer
A
Correct Option:
Because the firm is a price-taker and cannot influence the market price.

About This Question

This is Post Utme Elizade University 2018 Commerce Question 32. It is one of the objective questions from the 2018 Post Utme Elizade University Commerce examination.

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