Post Utme Wellspring University 2021 Commerce Question 36

Practice objective / multiple choice question 36 from the 2021 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2021 Commerce Objective / Multiple Choice
Question 36 POST_UTME_WELLSPRING_UNIVERSITY • 2021 • COMMERCE • objective

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. Which of the following is a correct statement about the law of increasing costs?

Answer Options

A. The law of increasing costs states that as the quantity of a good supplied increases, the average cost of production decreases.
Correct Answer B. The law of increasing costs states that as the quantity of a good supplied increases, the average cost of production increases.
C. The law of increasing costs states that as the quantity of a good supplied increases, the marginal cost of production decreases.
D. The law of increasing costs states that as the quantity of a good supplied increases, the marginal cost of production increases.
Correct Answer
B
Correct Option:
The law of increasing costs states that as the quantity of a good supplied increases, the average cost of production increases.

About This Question

This is Post Utme Wellspring University 2021 Commerce Question 36. It is one of the objective questions from the 2021 Post Utme Wellspring University Commerce examination.

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