Post Utme Skyline University 2023 Commerce Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2023 Commerce Objective / Multiple Choice
Question 1 POST_UTME_SKYLINE_UNIVERSITY • 2023 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm's inputs. What is the consequence of this decrease on the firm's production?

Answer Options

A. The firm will increase its production to take advantage of the decrease in marginal revenue product.
Correct Answer B. The firm will decrease its production to minimize losses.
C. The firm will maintain its current production level, as the decrease in marginal revenue product is offset by the law of diminishing marginal utility.
D. The firm will increase its production to take advantage of the decrease in marginal revenue product, but only if the decrease is significant.
Correct Answer
B
Correct Option:
The firm will decrease its production to minimize losses.

About This Question

This is Post Utme Skyline University 2023 Commerce Question 1. It is one of the objective questions from the 2023 Post Utme Skyline University Commerce examination.

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