If the Demand Curve Facing a Firm Is Perfectly Elastic,then

question 22

Multiple Choice

If the demand curve facing a firm is perfectly elastic,then:

• A) its marginal revenue will equal price.
• B) its marginal revenue schedule will decrease at an increasing rate.
• C) its marginal revenue schedule decreases twice as fast as the demand curve.
• D) it can increase its total revenue by lowering the price of its product.

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Definitions:

Sweet

A taste sensation often associated with sugar and characterized by a pleasurable flavor.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the effects of external stimuli on subsequent behavior.

Positive Reinforcement

A psychological concept involving the addition of a reward following a desired behavior, encouraging its future occurrence.

Behavior

The actions or reactions of an individual, often in relation to the environment or stimuli.