Post Utme Nile University 2019 Commerce Question 36

Practice objective / multiple choice question 36 from the 2019 Post Utme Nile University Commerce examination.

Post Utme Nile University 2019 Commerce Objective / Multiple Choice
Question 36 POST_UTME_NILE_UNIVERSITY • 2019 • COMMERCE • objective

In a production system, the Law of Diminishing Returns states that as the quantity of a variable input increases, the marginal product of that input will eventually decrease. However, this law does not apply to all production systems. Which of the following production systems is an exception to the Law of Diminishing Returns?

Answer Options

Correct Answer A. A perfectly competitive market
B. A perfectly inelastic market
C. A perfectly elastic market
D. A monopolistically competitive market
Correct Answer
A
Correct Option:
A perfectly competitive market

About This Question

This is Post Utme Nile University 2019 Commerce Question 36. It is one of the objective questions from the 2019 Post Utme Nile University Commerce examination.

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