If the demand curve facing a firm is perfectly elastic, then: / » Micro economics 2 solved MCQs / By admin Question: If the demand curve facing a firm is perfectly elastic, then: A. its marginal revenue will equal price. B. its marginal revenue schedule will decrease at an increasing rate. C. its marginal revenue schedule decreases twice as fast as the demand curve. D. it can increase its total revenue by lowering the price of its product. Answer» a. its marginal revenue will equal price. Note: The above multiple-choice question is for all general and Competitive Exams in India.
