For a downward-sloping demand curve, the marginal revenue decreases as the quantity sold increases.

Name: For a downward-sloping demand curve, the marginal revenue decreases as the quantity sold increases.
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

A downward-sloping demand curve means that as the quantity sold increases, the price must decrease in order to maintain demand. As a result, the marginal revenue earned on each additional unit sold will be lower and will decrease as quantity sold increases.

For a Downward-Sloping Demand Curve, the Marginal Revenue Decreases as the Quantity