Which of the Following Is True of a Firm That

question 43

Multiple Choice

Which of the following is true of a firm that faces a downward sloping demand curve?

• A)In order to sell more units,the firm needs to lower its price.
• B)The total cost curve for the firm is also downward sloping.
• C)The firm's total revenue and price are directly correlated.
• D)The marginal revenue from each unit sold is constant.
• E)The firm faces a constant marginal cost curve.

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Definitions:

Payment Plan

An agreement to pay a debt in specified amounts over a set period.

Financing Statement

A document filed to give public notice of a security interest in collateral, used to perfect a secured party's interest under the Uniform Commercial Code.

Real Estate Mortgage

A legal agreement where a borrower pledges real property to a lender as security for a loan used to purchase that property.

Financing Statement

A document filed by a creditor to indicate a security interest in the personal property of a debtor.