Post Utme Osustech 2018 Commerce Question 21

Practice objective / multiple choice question 21 from the 2018 Post Utme Osustech Commerce examination.

Post Utme Osustech 2018 Commerce Objective / Multiple Choice
Question 21 POST_UTME_OSUSTECH • 2018 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing opportunity costs. However, in a perfectly competitive market, firms are price-takers and cannot influence the market price. Explain why this is the case.

Answer Options

Correct Answer A. Because firms in a perfectly competitive market are price-takers and cannot influence the market price.
B. Because firms in a perfectly competitive market are price-makers and can influence the market price.
C. Because firms in a perfectly competitive market are subject to the law of increasing opportunity costs.
D. Because firms in a perfectly competitive market are not subject to the law of increasing opportunity costs.
Correct Answer
A
Correct Option:
Because firms in a perfectly competitive market are price-takers and cannot influence the market price.

About This Question

This is Post Utme Osustech 2018 Commerce Question 21. It is one of the objective questions from the 2018 Post Utme Osustech Commerce examination.

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