Question

given AR is equal to 5 and elasticity of demand is equal to 2 find number MR​

Answer 1

Answer:

the underlying products

Explanation:

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Answer 2

Answer:

The correct answer is +2.5.

Explanation:

How do you calculate demand elasticity for AR and MR?

If we have elasticity and AR, we can calculate the marginal revenue using the formula MR = AR (e – 1/e). Because the elasticity is equal to one, the above formula predicts that marginal revenue will be zero. AR and MR have a relationship in which MR should decrease faster than AR when AR decreases.

For above given question:

MR = AR(e -1)/e = 5(2-1)/2 = +2.5

As a result, the MR curve slopes downward and is below the AR curve.