A Firm Facing a Downward-Sloping Demand Curve Sells 50 Units

question 133

Multiple Choice

A firm facing a downward-sloping demand curve sells 50 units of output at $10 each.The firm's marginal revenue is

• A)$500
• B)more than $10 but less than $500
• C)$10
• D)less than $10
• E)zero

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Definitions:

Payment Terms

The terms that dictate when a seller will finalize a transaction, usually detailing the timeframe a buyer is granted to settle the owed amount.

Balance

The amount of money currently in an account or the difference between the total debits and credits recorded.

Overhead Costs

Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service.

Operating Profit

Profit earned from a firm's core business operations, excluding deductions of interest and taxes.