Post Utme Greenfield University 2022 Commerce Question 11

Practice objective / multiple choice question 11 from the 2022 Post Utme Greenfield University Commerce examination.

Post Utme Greenfield University 2022 Commerce Objective / Multiple Choice
Question 11 POST_UTME_GREENFIELD_UNIVERSITY • 2022 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm. What is the consequence of this decrease on the firm's production level?

Answer Options

A. The firm will increase its production level to maximize profits.
Correct Answer B. The firm will decrease its production level to minimize losses.
C. The firm will maintain its current production level.
D. The firm will increase its production level to meet the increasing demand.
Correct Answer
B
Correct Option:
The firm will decrease its production level to minimize losses.

About This Question

This is Post Utme Greenfield University 2022 Commerce Question 11. It is one of the objective questions from the 2022 Post Utme Greenfield University Commerce examination.

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