An Implication of the Downward Slope of the Demand Curve

question 34

Multiple Choice

An implication of the downward slope of the demand curve for a monopolistic competitive firm is that

• A) its marginal revenue curve slopes upward.
• B) its marginal revenue curve and its demand curve are identical (same) line.
• C) its marginal revenue curve slopes downward but lies above the demand curve.
• D) its marginal revenue curve slopes downward but lies below the demand curve.

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Definitions:

Online Auction Site

A website where goods or services are sold to the highest bidder through an auction process.

Online Store

A website or application where goods and services can be bought over the Internet using a web browser or mobile app.

Social Commerce

Social commerce is a subset of e-commerce that involves social media and user contributions to assist in online buying and selling of products and services.

B2C

Business-to-Consumer, a business model where products or services are sold directly from businesses to the end-consumers.