Exercises · Q3
Q.What is the value of the MR when the demand curve is elastic?
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is positive wherever demand is elastic ().
There is a fixed link between marginal revenue and the price elasticity of demand. From , whenever the bracket is positive, so is positive. Thus, over the elastic range of the demand curve, marginal revenue has a positive value (it becomes zero at unitary elasticity, , and negative in the inelastic range, ).
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