If a company faces a downward-sloping demand curve and has fixed costs of $1000, what will happen to its marginal revenue if it increases its output, assuming the demand remains stable?

When a company faces a downward-sloping demand curve, it means that as it increases the quantity of goods it sells, the price for each additional unit will decrease. This happens because consumers are willing to pay less for more of the same product. As the company increases its output, its marginal revenue, which is the additional income from selling one more unit, will also decrease. For example, if the company sells 100 units at $10 each, its total revenue is $1,000. But if it tries to sell 101 units, it may have to lower the price to $9.