If a Firm Faces a Downward-Sloping Demand Curve, Then

question 119

Multiple Choice

If a firm faces a downward-sloping demand curve, then:

• A)the firm could be either a perfectly competitive firm or an imperfectly firm.
• B)the firm's marginal revenue from selling an additional unit of output is less than price.
• C)it is a perfectly competitive firm.
• D)the firm's production process exhibits economies of scale.

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Definitions:

Idealized Prototype

An idealized prototype is a cognitive representation of what is considered the most typical and highly valued example of a certain category.

Bottom-up Processing

A cognitive process by which we analyze basic details first before constructing a higher level of perception.

Deep Structure Elaboration

A concept in cognitive psychology suggesting a detailed and profound processing of information, leading to better understanding and retention.

Surface Structure

In linguistics, it refers to the literal arrangement of words in a sentence, as opposed to the deeper, abstract meaning.