A downward-sloping demand curve will ensure that: A) P = MR. B) P MR. C) P

Name: A downward-sloping demand curve will ensure that: A) P = MR. B) P > MR. C) P < MR. D) P = MC.
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Question

A downward-sloping demand curve will ensure that:
A) P = MR.
B) P > MR.
C) P < MR.
D) P = MC.

Quizplus · Accepted Answer

P > MR because the demand curve is downward-sloping, which means that as the price of a good increases, the quantity demanded decreases. This means that the marginal revenue from selling an additional unit of the good will be less than the price of the good.

A Downward-Sloping Demand Curve Will Ensure That