Question

find the price if the marginal revenue is 30 and the elasticity of demand is 2​

Answer 1

Answer:

Marginal Revenue

Marginal Revenue

Marginal revenue (or marginal benefit) is a central concept in microeconomics that describes the additional total revenue generated by increasing product sales by 1 unit. To derive the value of marginal revenue, it is required to examine the difference between the aggregate benefits a firm received from the quantity of a good and service produced last period and the current period with one extra unit increase in the rate of production.

Explanation:

Answer 2

Answer: The price is Rs $45$

Explanation:-Given-Marginal revenue is $30$ the elasticity of demand is 2.

Find the price

Solution-$R_m=30$

$\eta =2$

$R_m=P(1-\frac{1}{\eta} )$

$30=P(1-\frac{1}{3} )$

$30=P(\frac{2}{3} )$

$\frac{30\times 3}{2}=P$

$P =45$

Hence, the price is Rs 45.

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