The Demand Curve Confronting a Competitive Firm

question 2

Multiple Choice

The demand curve confronting a competitive firm

• A)Equals the marginal revenue curve.
• B)Is horizontal,as is the market demand curve.
• C)Slopes downward,while the market demand curve is horizontal.
• D)Slopes downward,and the marginal revenue curve is below it.

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Definitions:

Consideration

A concept in contract law, referring to something of value exchanged between parties as part of an agreement.

Gratuitous Promise

A voluntary promise or agreement without consideration, where the promisor is not legally bound to fulfill the promise.

Common Law

A legal system based on judicial decisions and precedents rather than statutory laws, common in many English-speaking countries.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.