Post Utme Wellspring University 2025 Commerce Question 16

Practice objective / multiple choice question 16 from the 2025 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2025 Commerce Objective / Multiple Choice
Question 16 POST_UTME_WELLSPRING_UNIVERSITY • 2025 • COMMERCE • objective

In a perfectly competitive market, the law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus. However, the law of supply also assumes that the firm is a price-taker. What is the implication of this assumption on the firm's decision-making process?

Answer Options

A. The firm can set its own price for the good.
Correct Answer B. The firm must accept the market price for the good.
C. The firm can influence the market price of the good.
D. The firm can produce any quantity of the good it wants.
Correct Answer
B
Correct Option:
The firm must accept the market price for the good.

About This Question

This is Post Utme Wellspring University 2025 Commerce Question 16. It is one of the objective questions from the 2025 Post Utme Wellspring University Commerce examination.

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