If a Firm's Demand Curve Slopes Downward,the Firm's

question 66

Multiple Choice

If a firm's demand curve slopes downward,the firm's

• A) marginal revenue will rise as price is cut.
• B) marginal revenue will always be less than price.
• C) total revenue will fall steadily as price is cut.
• D) demand will be less than marginal revenue.
• E) price will exceed total revenue.

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Definitions:

Demand Conditions

Refers to the nature and scale of demand in the industry which affects the competitiveness and strategy of firms.

Potential Competitors

Firms or individuals that are not currently in the market but have the ability to enter and compete in the future.

Oligopolistic Industry

A market structure characterized by a small number of firms dominating the market, leading to strategic interactions in pricing and output.

Economic Efficiency

A situation where the distribution of resources is designed to enhance the production of goods and services maximally.