Post Utme Esut 2018 Commerce Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Esut Commerce examination.

Post Utme Esut 2018 Commerce Objective / Multiple Choice
Question 6 POST_UTME_ESUT • 2018 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of a good as its price increases. However, this is not the case in a monopoly market. Explain why the supply curve in a monopoly market is downward-sloping.

Answer Options

A. The monopolist has a fixed cost of production that increases as output increases.
B. The monopolist has a decreasing marginal cost of production that increases as output increases.
Correct Answer C. The monopolist has a decreasing marginal revenue that increases as output increases.
D. The monopolist has a fixed price that decreases as output increases.
Correct Answer
C
Correct Option:
The monopolist has a decreasing marginal revenue that increases as output increases.

About This Question

This is Post Utme Esut 2018 Commerce Question 6. It is one of the objective questions from the 2018 Post Utme Esut Commerce examination.

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