The demand curve for a firm's product is also the curve showing
A)total revenue.
B)marginal revenue.
C)average revenue.
D)average profits.

Question

Quizplus · Accepted Answer

The demand curve for a firm's product represents the average revenue it receives for each unit sold. Marginal revenue is the change in total revenue resulting from a one-unit change in output, so it is not necessarily the same as the demand curve. Total revenue is the product of quantity sold and price, so it is related to but not the same as the demand curve. Average profits cannot be determined solely from the demand curve and would require information on costs.

The Demand Curve for a Firm's Product Is Also the Curve