Post Utme Igbinedion University 2020 Commerce Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Igbinedion University Commerce examination.

Post Utme Igbinedion University 2020 Commerce Objective / Multiple Choice
Question 21 POST_UTME_IGBINEDION_UNIVERSITY • 2020 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal revenue product of a firm's last unit of labor will be less than the marginal product of that unit. What is the consequence of this on the firm's labor demand?

Answer Options

A. The firm will demand more labor to maximize profits.
Correct Answer B. The firm will demand less labor to minimize costs.
C. The firm will demand the same amount of labor to maintain market share.
D. The firm will demand more labor to increase market share.
Correct Answer
B
Correct Option:
The firm will demand less labor to minimize costs.

About This Question

This is Post Utme Igbinedion University 2020 Commerce Question 21. It is one of the objective questions from the 2020 Post Utme Igbinedion University Commerce examination.

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