Post Utme Uniport 2019 Economics Question 36

Practice objective / multiple choice question 36 from the 2019 Post Utme Uniport Economics examination.

Post Utme Uniport 2019 Economics Objective / Multiple Choice
Question 36 POST_UTME_UNIPORT • 2019 • ECONOMICS • objective

In a perfectly competitive market, the supply curve is downward sloping because firms are motivated by the desire to maximize their profits. However, this is not the case in a monopoly market where the supply curve is vertical. Explain why this is so.

Answer Options

Correct Answer A. Because firms in a monopoly market have complete control over the market and can set their prices and output levels without fear of competition.
B. Because firms in a monopoly market are not motivated by the desire to maximize their profits, but rather by the desire to maximize their market share.
C. Because firms in a monopoly market are subject to government regulation and are not allowed to set their prices and output levels freely.
D. Because firms in a monopoly market are not able to adjust their prices and output levels in response to changes in market conditions.
Correct Answer
A
Correct Option:
Because firms in a monopoly market have complete control over the market and can set their prices and output levels without fear of competition.

About This Question

This is Post Utme Uniport 2019 Economics Question 36. It is one of the objective questions from the 2019 Post Utme Uniport Economics examination.

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