A Downward- Sloping AR Curve Implies That

question 23

Multiple Choice

A downward- sloping AR curve implies that:

• A)AR is below MR at all positive levels of output.
• B)price is falling as output rises.
• C)TR is falling as output increases.
• D)profits are decreasing as price falls.

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Definitions:

Time is of the Essence

A clause in contracts that specifies that exact times and dates are crucial and non-adherence to them constitutes a breach of contract.

Strict Performance

A legal standard requiring parties to a contract to fulfill their obligations exactly as specified in the contract, without deviation or error.

Express Condition

A specific condition explicitly stated in a contract that must be fulfilled for the contract's obligations to be performed.

Condition Subsequent

A condition that operates to relieve or discharge one from his obligation under a contract.