If a Firm Faces a Downward-Sloping Demand Curve,its Marginal Revenue

question 94

Multiple Choice

If a firm faces a downward-sloping demand curve,its marginal revenue is

• A)less than its marginal cost
• B)greater than price
• C)less than price
• D)equal to price
• E)equal to its total revenue

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Definitions:

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered, but not yet paid for.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

Average Daily Sales

The average amount of sales generated per day over a specific period, commonly used to assess business performance.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of customers, which influence terms of credit and collection procedures.