Question

If marginal revenue is 20 and elasticity of demand is 5/2, then average is​

Answer 1

Given :- If marginal revenue is 20 and elasticity of demand is 5/2 .

To Find :-

• Average = ?

Answer :-

we know that,

• Average = Marginal revenue * [ elasticity of demand / (elasticity of demand - 1)]

putting values we get,

→ Average = 20 * [(5/2) / (5/2 - 1)]

→ Average = 20 * [(5/2) / (3/2)]

→ Average = 20 * [(5/2) * (2/3]

→ Average = 20 * (5/3)

→ Average = (100/3)

→ Average = 33.34 (Ans.)

Learn more :-

The cost of sunflower oil is increased by 30 % due to which consumption is decreased by 20%. Percentage

change in the ex...

https://brainly.in/question/35132516