10 Do Homework - James Hansen- Google Chrome Secure https://www.mathd.com/Studen

Question

10 Do Homework - James Hansen- Google Chrome Secure https://www.mathd.com/Student/PlayerHomework.aspx?homeworkld-461041867&questionld-;: Fall 2017 EC201-01 MW 10am-11:50am Homework: Homework Chapter 13 Score: 0 of 1 pt 13.1-10 31 of 40 (39 complete) 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 different OB. 0 Price equals average revenue but is less than marginal revenue. C. Price OD. Price, average revenue, and marginal revenue are all equal. equals average revenue but is greater than marginal revenue. Click to select your answer and then click Check Answer

Explanation / Answer

Correct option is (C).

Average revenue = Total revenue / Quantity = (Price x Quantity) / Quantity = Price

Therefore, Price = Average revenue for all firms.

When demand curve is downward sloping, Marginal revenue (MR) curve lies below demand curve and therefore, Price is higher than MR (i.e. Average revenue is higher than MR).

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.