Which of the Following Is True of a Firm Facing

question 32

Multiple Choice

Which of the following is true of a firm facing a downward sloping demand curve?

• A) In order to sell more units, the firm needs to lower its price.
• B) A price cut will reduce total revenue.
• C) The firm's total revenue and price are directly correlated.
• D) The marginal revenue from each unit sold is constant.
• E) The firm faces a constant marginal cost curve.

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Military Service

A period of time spent serving in the armed forces of a country, either as a compulsory duty or voluntarily.

National Origin

Refers to the country where a person was born, or where their ancestors come from, often considered in discussions of identity and legal rights.

Salary History

A record of the earnings a person has received from their employment over time.