Which of the following is true for a firm with a downward-sloping demand curve for its product?
A)Price, average revenue, and marginal revenue are all equal.
B)Price, average revenue, and marginal revenue are all different.
C)Price equals average revenue but is greater than marginal revenue.
D)Price equals average revenue but is less than marginal revenue.

Question

Quizplus · Accepted Answer

For a firm with a downward-sloping demand curve, price equals average revenue, but marginal revenue is less than price because to sell additional units, the firm must lower the price on all units sold.

Which of the Following Is True for a Firm with a Downward-Sloping