Firm facing downward-sloping demand curve


Problem: Marginal Revenue becomes negative for a firm faced with a downward-sloping demand curve when:

a) the demand price becomes negative

b) the demand elasticity drops from elastic to inelastic

c) total revenue is maximized

d) the loss on previous units is at is maximum

e) both b and c

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Microeconomics: Firm facing downward-sloping demand curve
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