Post Utme Unn 2019 Commerce Question 26

Practice objective / multiple choice question 26 from the 2019 Post Utme Unn Commerce examination.

Post Utme Unn 2019 Commerce Objective / Multiple Choice
Question 26 POST_UTME_UNN • 2019 • COMMERCE • objective

In a perfectly competitive market, the law of supply and demand dictates that the price of a commodity will be determined by the intersection of the supply and demand curves. However, if the market is characterized by oligopoly, the price of the commodity will be determined by the oligopolistic firms' strategic interactions. Which of the following best describes the primary difference between the two market structures?

Answer Options

A. The price of the commodity is determined by the intersection of the supply and demand curves.
Correct Answer B. The price of the commodity is determined by the oligopolistic firms' strategic interactions.
C. The supply curve is steeper in an oligopolistic market.
D. The demand curve is flatter in a perfectly competitive market.
Correct Answer
B
Correct Option:
The price of the commodity is determined by the oligopolistic firms' strategic interactions.

About This Question

This is Post Utme Unn 2019 Commerce Question 26. It is one of the objective questions from the 2019 Post Utme Unn Commerce examination.

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