Post Utme Summit University 2018 Commerce Question 11

Practice objective / multiple choice question 11 from the 2018 Post Utme Summit University Commerce examination.

Post Utme Summit University 2018 Commerce Objective / Multiple Choice
Question 11 POST_UTME_SUMMIT_UNIVERSITY • 2018 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal returns applies to the production of a good. However, the firm's marginal revenue product (MRP) curve is upward-sloping. Explain why this is the case.

Answer Options

A. The firm is a price-taker and the market demand curve is downward-sloping.
B. The firm's production function exhibits increasing returns to scale.
Correct Answer C. The firm's marginal revenue product (MRP) curve is upward-sloping because the firm's marginal revenue (MR) curve is downward-sloping.
D. The firm is a monopolist and the market demand curve is upward-sloping.
Correct Answer
C
Correct Option:
The firm's marginal revenue product (MRP) curve is upward-sloping because the firm's marginal revenue (MR) curve is downward-sloping.

About This Question

This is Post Utme Summit University 2018 Commerce Question 11. It is one of the objective questions from the 2018 Post Utme Summit University Commerce examination.

View More Post Utme Summit University 2018 Commerce Questions More Post Utme Summit University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support