Question

4.
What will be price elasticity when MR is zero?​

Answer 1

Answer:

If the marginal revenue is zero as the total revenue reaches its maximum at this point, the elasticity of demand on average revenue curve is less than one(e<1) then it denotes that the change in average revenue due to a unit change in the price of the output for which it is sold in less than one.

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Answer 2

Explanation:

If the marginal revenue is zero as the total revenue reaches its maximum at this point, the elasticity of demand on average revenue curve is less than one(e<1) then it denotes that the change in average revenue due to a unit change in the price of the output for which it is sold in less than one.

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