Post Utme Osustech 2021 Economics Question 36

Practice objective / multiple choice question 36 from the 2021 Post Utme Osustech Economics examination.

Post Utme Osustech 2021 Economics Objective / Multiple Choice
Question 36 POST_UTME_OSUSTECH • 2021 • ECONOMICS • objective

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increa\sing \costs. However, in a perfectly competitive market, the supply curve is also downward-sloping because of the law of diminishing marginal utility. Which of the following statements is correct?

Answer Options

A. The law of increa\sing \costs causes the supply curve to shift to the right.
B. The law of diminishing marginal utility causes the supply curve to shift to the left.
C. The supply curve is upward-sloping because of the law of increa\sing \costs.
Correct Answer D. The supply curve is downward-sloping because of the law of diminishing marginal utility.
Correct Answer
D
Correct Option:
The supply curve is downward-sloping because of the law of diminishing marginal utility.

About This Question

This is Post Utme Osustech 2021 Economics Question 36. It is one of the objective questions from the 2021 Post Utme Osustech Economics examination.

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