Post Utme Uniport 2025 Commerce Question 31

Practice objective / multiple choice question 31 from the 2025 Post Utme Uniport Commerce examination.

Post Utme Uniport 2025 Commerce Objective / Multiple Choice
Question 31 POST_UTME_UNIPORT • 2025 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases. However, the law of increasing costs states that as the quantity of a good produced increases, the average cost of production increases. Which of the following is a correct statement regarding the relationship between the law of diminishing marginal utility and the law of increasing costs?

Answer Options

A. The law of diminishing marginal utility is a consequence of the law of increasing costs.
Correct Answer B. The law of increasing costs is a consequence of the law of diminishing marginal utility.
C. The law of diminishing marginal utility and the law of increasing costs are unrelated.
D. The law of diminishing marginal utility and the law of increasing costs are mutually exclusive.
Correct Answer
B
Correct Option:
The law of increasing costs is a consequence of the law of diminishing marginal utility.

About This Question

This is Post Utme Uniport 2025 Commerce Question 31. It is one of the objective questions from the 2025 Post Utme Uniport Commerce examination.

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