Post Utme Oau 2017 Commerce Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Oau Commerce examination.

Post Utme Oau 2017 Commerce Objective / Multiple Choice
Question 6 POST_UTME_OAU • 2017 • COMMERCE • objective

In a monopolistically competitive market, a firm's demand curve is downward sloping due to the presence of close substitutes. However, the firm's marginal revenue curve is not necessarily downward sloping. What is the reason for this?

Answer Options

Correct Answer A. The firm's marginal revenue curve is downward sloping because the firm is a price taker.
B. The firm's marginal revenue curve is downward sloping because the firm is a price maker.
C. The firm's marginal revenue curve is downward sloping because the firm's demand curve is downward sloping.
D. The firm's marginal revenue curve is downward sloping because the firm is a monopolist.
Correct Answer
A
Correct Option:
The firm's marginal revenue curve is downward sloping because the firm is a price taker.

About This Question

This is Post Utme Oau 2017 Commerce Question 6. It is one of the objective questions from the 2017 Post Utme Oau Commerce examination.

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