Which Is True If a Firm Faces a Downward-Sloping Demand

question 21

Multiple Choice

Which is true if a firm faces a downward-sloping demand curve? AU: Edit ok?

• A) The demand for its product must be inelastic.
• B) It can control both price and quantity sold.
• C) It must reduce its price to sell more units.
• D) It will always make a profit.

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Definitions:

Customer Needs

Customer needs are the recognized desires or requirements that clients expect to be fulfilled by a product or service.

Decentralization

The distribution of decision-making power and authority away from a central location or authority figure, often to enhance flexibility and responsiveness.

Lower Level Departments

Departments within an organization that are responsible for executing the operational activities rather than setting strategic goals or making high-level decisions.

Accountability

The obligation of an individual, organization, or entity to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.