Question

Explain relationship between MR, TR and price elasticity of demand?​

Answer 1

relationship between MR and TR(when price remains constant) :TR increase at a constant rate and the TR curve is a positively sloped straight line due to constant MR.

relationship between MR and TR ( when price falls with rise in output)

(a) As long as MR is positive , TR is at its maximum point.

(b) when MR is zero ,TR is at maximum point.

(c) when MR becomes negative , TR starts falling ...