Post Utme Skyline University 2017 Commerce Question 36

Practice objective / multiple choice question 36 from the 2017 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2017 Commerce Objective / Multiple Choice
Question 36 POST_UTME_SKYLINE_UNIVERSITY • 2017 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of the good at a higher price, but they are not willing to supply more at a lower price. What is the primary reason for this behavior?

Answer Options

A. Firms are risk-averse and prefer higher prices to lower prices.
B. Firms are profit-maximizing and want to maximize their revenue.
C. Firms are subject to increasing costs and want to minimize their losses.
Correct Answer D. Firms are price-takers and have no control over the market price.
Correct Answer
D
Correct Option:
Firms are price-takers and have no control over the market price.

About This Question

This is Post Utme Skyline University 2017 Commerce Question 36. It is one of the objective questions from the 2017 Post Utme Skyline University Commerce examination.

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