Post Utme Uniport 2018 Economics Question 32

Practice objective / multiple choice question 32 from the 2018 Post Utme Uniport Economics examination.

Post Utme Uniport 2018 Economics Objective / Multiple Choice

Question 32 POST_UTME_UNIPORT • 2018 • ECONOMICS • objective

A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will be the effect on its revenue?

Answer Options

A. Revenue will increase as the firm is able to charge a higher price.

Correct Answer B. Revenue will decrease as the firm is unable to sell as much at the higher price.

C. Revenue will remain the same as the firm is able to sell the same quantity at the higher price.

D. Revenue will increase as the firm is able to sell more at the higher price.

Correct Answer

Correct Option:

Revenue will decrease as the firm is unable to sell as much at the higher price.

About This Question

This is Post Utme Uniport 2018 Economics Question 32. It is one of the objective questions from the 2018 Post Utme Uniport Economics examination.

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