If a Firm's Demand Curve Is Negatively (Downward) Sloping and Sales

question 61

Multiple Choice

If a firm's demand curve is negatively (downward) sloping and sales increase by one unit, marginal revenue will be:

• A) increasing, as a result of the increase in sales
• B) less than the new lower price
• C) equal to the original price
• D) less than the new higher price

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Definitions:

Germ

A microorganism, especially one that causes disease; commonly used to refer to pathogens or microbes.

Endosperm

The part of a seed that acts as a food store for the developing plant embryo, usually containing starch with protein and other nutrients.

Essential Nutrients

Nutrients necessary for normal body functioning that must be obtained from the diet; includes vitamins, minerals, amino acids, and fatty acids.

Chemical Reactions

Processes that involve the transformation of one set of chemical substances to another.