Post Utme Pan Atlantic University 2022 Commerce Question 30

Practice objective / multiple choice question 30 from the 2022 Post Utme Pan Atlantic University Commerce examination.

Post Utme Pan Atlantic University 2022 Commerce Objective / Multiple Choice
Question 30 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2022 • COMMERCE • objective

In a perfectly competitive market, the law of one price dictates that the price of a commodity will be equal to the opportunity cost of production. However, in a market with imperfect competition, the law of one price may not hold due to the presence of barriers to entry and product differentiation. Which of the following best describes the law of one price in the context of imperfect competition?

Answer Options

A. The law of one price is irrelevant in imperfect competition.
Correct Answer B. The law of one price is applicable in imperfect competition, but may not hold due to market power.
C. The law of one price is not applicable in imperfect competition.
D. The law of one price is a myth in imperfect competition.
Correct Answer
B
Correct Option:
The law of one price is applicable in imperfect competition, but may not hold due to market power.

About This Question

This is Post Utme Pan Atlantic University 2022 Commerce Question 30. It is one of the objective questions from the 2022 Post Utme Pan Atlantic University Commerce examination.

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