Post Utme Summit University 2021 Economics Question 31

Practice objective / multiple choice question 31 from the 2021 Post Utme Summit University Economics examination.

Post Utme Summit University 2021 Economics Objective / Multiple Choice
Question 31 POST_UTME_SUMMIT_UNIVERSITY • 2021 • ECONOMICS • objective

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price-takers, what is the relationship between the market price and the marginal \cost of each firm?

Answer Options

A. The market price is equal to the marginal \cost of each firm.
B. The market price is greater than the marginal \cost of each firm.
Correct Answer C. The market price is less than the marginal \cost of each firm.
D. The market price is unrelated to the marginal \cost of each firm.
Correct Answer
C
Correct Option:
The market price is less than the marginal \cost of each firm.

About This Question

This is Post Utme Summit University 2021 Economics Question 31. It is one of the objective questions from the 2021 Post Utme Summit University Economics examination.

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