The demand curve facing a firm
A)indicates the quantity of output that customers will purchase from that firm,at various prices
B)shows the minimum cost of producing any level of output
C)is drawn assuming that the firm is operating in the short run
D)indicates how much output a profit-maximizing firm will produce,at various prices
E)is downward sloping because consumers have less money to spend,the more output they purchase

Question

Quizplus · Accepted Answer

The demand curve facing a firm indicates the quantity of output that customers will purchase from that firm, at various prices. This reflects the relationship between the price of the good or service and the quantity demanded by consumers. As the price increases, the quantity demanded generally decreases and vice versa.

The Demand Curve Facing a Firm