Register
Which statement is true? A. Instead of applying the marginal decision rule, monopoly firms just set the price as high as possible. B. If demand is downward sloping, P = MR. C. If demand is downward sloping,
171k views
2 votes
Which statement is true?

A. Instead of applying the marginal decision rule, monopoly firms just set the price as high as possible.
B. If demand is downward sloping, P = MR.
C. If demand is downward sloping, P = ATC.
D. If demand is downward sloping, P > MR.

User Erichui
by
5.7k points

1 Answer

4 votes

Answer:

D. If demand is downward sloping, P > MR.

Step-by-step explanation:

Demand curve is plotted on graph on axis of price and quantity. Downward sloping demand curve means to increase quantity demanded (to sell more) it is necessary to sell at lower price.

Marginal revenue is the additional revenue from selling one more unit . As price has to go down to sell more, additional revenue will be less than current price.

User Aflatoon Singh
by
5.6k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.8m questions

7.5m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!