Post Utme Wellspring University 2017 Economics Question 36

Practice objective / multiple choice question 36 from the 2017 Post Utme Wellspring University Economics examination.

Post Utme Wellspring University 2017 Economics Objective / Multiple Choice

Question 36 POST_UTME_WELLSPRING_UNIVERSITY • 2017 • ECONOMICS • objective

A perfectly competitive market has many firms producing a homogeneous product. If the market price falls, which of the following will occur?

Answer Options

A. Firms will increase production to capture more market share.

B. Firms will decrease production to reduce \costs.

Correct Answer C. Firms will exit the market to avoid losses.

D. Firms will increase prices to maintain profit margins.

Correct Answer

Correct Option:

Firms will exit the market to avoid losses.

About This Question

This is Post Utme Wellspring University 2017 Economics Question 36. It is one of the objective questions from the 2017 Post Utme Wellspring University Economics examination.

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