Post Utme Rhema University 2025 Commerce Question 36

Practice objective / multiple choice question 36 from the 2025 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2025 Commerce Objective / Multiple Choice
Question 36 POST_UTME_RHEMA_UNIVERSITY • 2025 • COMMERCE • objective

In a perfectly competitive market, the law of supply and demand dictates that the price of a commodity will be determined by the intersection of the supply and demand curves. However, in a market with oligopolistic competition, the price of a commodity is determined by the interaction of a small number of firms. Which of the following best describes the relationship between the price of a commodity and the number of firms in an oligopolistic market?

Answer Options

A. The price of a commodity will decrease as the number of firms in the market increases.
Correct Answer B. The price of a commodity will increase as the number of firms in the market increases.
C. The price of a commodity will remain constant regardless of the number of firms in the market.
D. The price of a commodity will be determined by the largest firm in the market.
Correct Answer
B
Correct Option:
The price of a commodity will increase as the number of firms in the market increases.

About This Question

This is Post Utme Rhema University 2025 Commerce Question 36. It is one of the objective questions from the 2025 Post Utme Rhema University Commerce examination.

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