Post Utme Osustech 2017 Commerce Question 25

Practice objective / multiple choice question 25 from the 2017 Post Utme Osustech Commerce examination.

Post Utme Osustech 2017 Commerce Objective / Multiple Choice
Question 25 POST_UTME_OSUSTECH • 2017 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm's factors of production. What is the consequence of this decrease on the firm's production decision?

Answer Options

A. The firm will increase its production to take advantage of the decrease in marginal revenue product.
Correct Answer B. The firm will decrease its production to minimize losses.
C. The firm will maintain its current production level.
D. The firm will increase its production to meet the increasing demand.
Correct Answer
B
Correct Option:
The firm will decrease its production to minimize losses.

About This Question

This is Post Utme Osustech 2017 Commerce Question 25. It is one of the objective questions from the 2017 Post Utme Osustech Commerce examination.

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