If the demand curve a firm faces shifts to the right,usually
A)it would be impossible to tell whether the marginal revenue curve shifts.
B)the marginal revenue curve would shift to the left.
C)the marginal revenue curve would shift to the right.
D)the marginal revenue curve would not shift.

Question

Quizplus · Accepted Answer

When the demand curve shifts to the right, the marginal revenue curve also shifts to the right. This is because marginal revenue is the additional revenue earned from selling one more unit of output, and the increase in demand implies that the firm can sell more units at a higher price, thereby increasing its marginal revenue.

If the Demand Curve a Firm Faces Shifts to the Right,usually