Question

The relation between Marginal Revenue ,,Average Revenue and elasticity ƞis,

a) MR = AR (1-1/ ƞ.)

b) MR = AR (1+ 1/ ƞ.)

c) AR = MR (1+ 1/ ƞ.)d) AR = MR (1+ 1/ ƞ.)​

Answer 1

Answer:

To sum up, marginal revenue is always positive at any point or output where the elasticity of the average revenue curve is greater than one and marginal revenue is always negative where the elasticity of average revenue curve is less than one and marginal revenue is zero corresponding to unit elasticity at the average ...