Post Utme Elizade University 2019 Commerce Question 35

Practice objective / multiple choice question 35 from the 2019 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2019 Commerce Objective / Multiple Choice
Question 35 POST_UTME_ELIZADE_UNIVERSITY • 2019 • COMMERCE • objective

In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing marginal opportunity cost. What is the correct interpretation of this statement?

Answer Options

Correct Answer A. The law of increasing marginal opportunity cost implies that as the quantity supplied increases, the marginal cost of production also increases.
B. The law of increasing marginal opportunity cost implies that as the quantity supplied increases, the marginal cost of production decreases.
C. The law of increasing marginal opportunity cost implies that as the quantity supplied increases, the average cost of production remains constant.
D. The law of increasing marginal opportunity cost implies that as the quantity supplied increases, the average cost of production decreases.
Correct Answer
A
Correct Option:
The law of increasing marginal opportunity cost implies that as the quantity supplied increases, the marginal cost of production also increases.

About This Question

This is Post Utme Elizade University 2019 Commerce Question 35. It is one of the objective questions from the 2019 Post Utme Elizade University Commerce examination.

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