Post Utme Uniben 2021 Commerce Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Uniben Commerce examination.

Post Utme Uniben 2021 Commerce Objective / Multiple Choice
Question 21 POST_UTME_UNIBEN • 2021 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of a good as its price increases. However, this is not the case in a monopoly market. Explain why the supply curve in a monopoly market is downward-sloping.

Answer Options

A. The firm's fixed costs are high, making it unprofitable to produce at low prices.
Correct Answer B. The firm's marginal cost is decreasing, making it profitable to produce at low prices.
C. The firm's demand curve is highly elastic, making it unprofitable to produce at low prices.
D. The firm's production costs are high, making it unprofitable to produce at low prices.
Correct Answer
B
Correct Option:
The firm's marginal cost is decreasing, making it profitable to produce at low prices.

About This Question

This is Post Utme Uniben 2021 Commerce Question 21. It is one of the objective questions from the 2021 Post Utme Uniben Commerce examination.

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