Which of the following statements is true? For a firm facing a linear downward-sloping demand curve,...
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Which of the following statements is true? For a firm facing a linear downward-sloping demand curve, if marginal revenue is positive, the firm will not increase total revenue by cutting price. If marginal revenue is negative, the product the firm produces must be price elastic. If a calculated price elasticity is -0.95, the firm's marginal revenue is positive, but falling. None of the above statements are true. Which of the following statements is true? For a firm facing a linear downward-sloping demand curve, if marginal revenue is positive, the firm will not increase total revenue by cutting price. If marginal revenue is negative, the product the firm produces must be price elastic. If a calculated price elasticity is -0.95, the firm's marginal revenue is positive, but falling. None of the above statements are true.
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B is the correct answer b If marginal revenue is negative the product the firm produces must be pric... View the full answer
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