Post Utme Greenfield University 2017 Economics Question 16

Practice objective / multiple choice question 16 from the 2017 Post Utme Greenfield University Economics examination.

Post Utme Greenfield University 2017 Economics Objective / Multiple Choice
Question 16 POST_UTME_GREENFIELD_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the relationship between the market price and the marginal revenue (MR) of each firm?

Answer Options

A. MR = P
B. MR = P + \( ΔP/ΔQ \) * Q
Correct Answer C. MR = P - \( ΔP/ΔQ \) * Q
D. MR = P + \( ΔP/ΔQ \) * Q + \( Δ^2P/ΔQ^2 \) * Q^2
Correct Answer
C
Correct Option:
MR = P - \( ΔP/ΔQ \) * Q

About This Question

This is Post Utme Greenfield University 2017 Economics Question 16. It is one of the objective questions from the 2017 Post Utme Greenfield University Economics examination.

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