If the Demand Curve for a Firm Is Downward Sloping

question 82

Essay

If the demand curve for a firm is downward sloping, why is the marginal revenue less than average revenue?

---

Definitions:

Dividend Stream

Dividend Stream is the sequence of cash payments made to shareholders of a corporation over time, typically derived from the company's earnings.

Required Return

The least amount of return expected by an investor from putting money into a certain asset, while taking its risk profile into account.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamentals, independent of market value.

Required Return

The minimum expected return an investor demands for investing in a particular asset, factoring in its risk.