Home

What is the correct answer?

4

When elasticity of demand is less than one (e<1), then following the formula MR=P[1-1/e], the MR will:

A. Positive

B. Negative

C. Zero

D. None of the above

Correct Answer :

B. Negative


Related Questions

The long run total cost is attained by: All the firms with identical costs under perfect competition well, in… Elasticity of supply means change in supply due to change in: Cross-elasticity of demand or cross-price elasticity between two perfect… The long-run AC curve is constructed from: Whish of the following represents the average revenue curve of a firm? The Lambda or Langrange Multiplier is a: In case of budget line, we get pairs of two goods where consumers income… Rotten eggs are: The main contribution of Prof. Lord Keynes is in the field of: In the case of a giffen good, the income effect: In economic term water is a: The ordinary demand curve is also called: The elasticity of demand is equal to slope of demand function divided… Marginal utility means: A vertical supply curve parallel to the price axis implies that the elasticity… Any expansion in output by a firm in the short period will always reduce… In measuring price-elasticity: The study of economics just in theoretical way is called: The long run average cost curve is the envelope of: In monopolistic competition, if a firm lowers its price, the rival firms… In monopolistic competition, the cost curves of all firms are: Extension (expansion) of demand means: When in a market, the number of buyers is very large and the number of… When SAC curve rises, SMC curve lies its: A monopoly producer has: In Edgeworth model, price remains: On the total utility curve the economically relevant range is the portion… According to Chamberline, in monopolistic competition, differentiation… Identify the work of Irving Fisher: