Post Utme Greenfield University 2021 Economics Question 29

Practice objective / multiple choice question 29 from the 2021 Post Utme Greenfield University Economics examination.

Post Utme Greenfield University 2021 Economics Objective / Multiple Choice
Question 29 POST_UTME_GREENFIELD_UNIVERSITY • 2021 • ECONOMICS • objective

A monopolistically competitive firm is characterized by a downward-sloping demand curve and a high degree of product differentiation. What is the primary reason for the firm's downward-sloping demand curve?

Answer Options

A. The firm's high fixed \costs lead to a downward-sloping demand curve.
B. The firm's high marginal \costs lead to a downward-sloping demand curve.
Correct Answer C. The firm's product differentiation leads to a downward-sloping demand curve.
D. The firm's high elasticity of demand leads to a downward-sloping demand curve.
Correct Answer
C
Correct Option:
The firm's product differentiation leads to a downward-sloping demand curve.

About This Question

This is Post Utme Greenfield University 2021 Economics Question 29. It is one of the objective questions from the 2021 Post Utme Greenfield University Economics examination.

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