Post Utme Futa 2018 Commerce Question 16

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

Post Utme Futa 2018 Commerce Objective / Multiple Choice
Question 16 POST_UTME_FUTA • 2018 • COMMERCE • objective

In a perfectly competitive market, the supply curve is typically represented by the law of increasing marginal costs. What is the primary reason for this relationship?

Answer Options

A. The law of increasing marginal costs is a result of the increasing scarcity of resources.
B. The law of increasing marginal costs is a result of the decreasing marginal utility of additional units produced.
Correct Answer C. The law of increasing marginal costs is a result of the increasing marginal cost of production due to the law of diminishing returns.
D. The law of increasing marginal costs is a result of the increasing price of raw materials.
Correct Answer
C
Correct Option:
The law of increasing marginal costs is a result of the increasing marginal cost of production due to the law of diminishing returns.

About This Question

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

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