Post Utme Lead City University 2022 Commerce Question 31

Practice objective / multiple choice question 31 from the 2022 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2022 Commerce Objective / Multiple Choice
Question 31 POST_UTME_LEAD_CITY_UNIVERSITY • 2022 • COMMERCE • objective

In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing opportunity costs. However, in a monopoly market, the supply curve is upward sloping. What is the main reason for this difference?

Answer Options

A. The monopolist has complete control over the market and can influence the price.
B. The monopolist has a fixed cost that increases as output increases.
Correct Answer C. The monopolist has a decreasing marginal cost that increases as output increases.
D. The monopolist has a fixed supply of resources that decreases as output increases.
Correct Answer
C
Correct Option:
The monopolist has a decreasing marginal cost that increases as output increases.

About This Question

This is Post Utme Lead City University 2022 Commerce Question 31. It is one of the objective questions from the 2022 Post Utme Lead City University Commerce examination.

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