Post Utme Lautech 2020 Economics Question 32

Practice objective / multiple choice question 32 from the 2020 Post Utme Lautech Economics examination.

Post Utme Lautech 2020 Economics Objective / Multiple Choice
Question 32 POST_UTME_LAUTECH • 2020 • ECONOMICS • objective
Post Utme Lautech 2020 Economics Question 32 diagram

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

Answer Options

Correct Answer A. The firm's high degree of product differentiation leads to a downward-sloping demand curve.
B. The firm's downward-sloping demand curve is due to the law of diminishing marginal utility.
C. The firm's downward-sloping demand curve is due to the law of supply and demand.
D. The firm's downward-sloping demand curve is due to the high degree of competition in the market.
Correct Answer
A
Correct Option:
The firm's high degree of product differentiation leads to a downward-sloping demand curve.

About This Question

This is Post Utme Lautech 2020 Economics Question 32. It is one of the objective questions from the 2020 Post Utme Lautech Economics examination.

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